7/12/2021 6:15:25 AM GMT
There has been a fair bit of catching up to do after the past week spent outside of the financial market’s matrix. The biggest takeaways appear to be that the US Dollar rally has run its course for now and that the US bond market refuses to taper tantrums. In fact, US bond yields have turned about-face and headed South.
The latter appears to be vexing the minds of inflationists everywhere. As Pantheon Macroeconomics notes, Federal Reserve buying has run ahead of US government issuance in Q2, and the end of the US debt ceiling suspension looms at the end of the month. Throw in a relentless ocean of capital looking for a home in a zero percent world, and the answer to the bond market rally and consequent fall of the US Dollar and rally in stock markets is likely right in front of our faces.
A busy week ahead - MarketPulse
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