Today’s FT had me head banging. So few money managers understand money and when the fin press weigh in with their ignorance…well its more than i can handle...especially as I'm taking a sabbatical from the good life
The bond market, think of it as a very busy restaurant, no empty seats or tables, everyone smart, hungry & attentive. Food’s usually good in busy restos. Bond market sets the shape of the curve to reflect incoming policy mistakes or to urge actions be taken.
So far they’ve flattened it, i.e., they’ve priced long bond yields closer to the calculations or prognostications of feeble central bankers. That’s like a yellow card or cautionary signal. We’re in a watch and see pattern.
But if the dollar index breaks higher through the barrier of 95, I’d wager you’ll see an inversion or a red card warning of impending policy error. My thoughts are usually conditional...show me the money
But hat tip to Auntie Yellen in Dublin who kinda made some sense y’day - must be something in the water..?
But "central banks dictate" to the Goliath of the bond market...you're having a laugh. It's all Wizard of Oz propaganda parlayed by the financial press who in their ignorance grasp onto such ghosts in the machine.
Let's check in on The John Galt Line, Chp VIII "it was their daily duty (FT) to serve as audience for some public figure who made utterances about the public good, in phrases carefully chosen to convey no meaning."
BOOM!
This stuff seems more high-brow when separated from the morass of instagram...
@threadreaderapp unroll
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