|
I listed to the Money Talks podcast from the economist. They had a Bond guy on there talking about T Bonds. I haven't paid attention to treasuries in years because, ****ing why?
Anyway, the dude on there postulated that last week's negative action in the markets was driven by a pretty sizable (comparatively) runup in the Treasury Markets. He was quick to point out that as high as they got was an all time low in 2016 or thereabouts, but as quick as it gained the market got spooked pretty hard.
Apparently there were some extenuating circumstances that moved the price like it did, which I can't remember (**** off I was at the gym), but the thing I do remember is there were some Japanese and some other country that were buyers at that price (apparently their interest rates are lower yet).
Bottom line is there were some extremely lightly correlated things that happened and the treasuries spiked some and that created some (perhaps localized) hysteria about inflation.
That's the only place I heard any of that. What I took away is, "buckle up kids." Nobody wants to be out of the market place in this environment, but the people that matter are nervous as a cat on a hot tin roof.
If there are any real, solid indicators of even healthy - but slightly elevated - inflation, it could get real ugly real quick. And if fools are ready to jump on our treasuries, it could get out of hand real quick.
|