Did you think the Fed hiked rates on Wednesday?
Well, they talked about fiddling around with overnight rates, reverse repos and their usual excuses for why the economy is still struggling to reach stall speed, but let’s have a quick look at market rates for US sovereign debt as at 6.45pm GMT on 18th December shall we:
With one month yields at 0.165% and 3 month yields at 0.188%, I wonder how bullish the bond market is feeling today? Longer dated yields are also signalling an incipient recession.
Markets are wobbling once again, the time to re-position portfolios is right now.
Act with speed, or repent at your leisure.
Monetarism died this week, the myth of central bank power is now exposed for what it always was, pure fiction.