Core inflation running in the US at 2,3% - 2 yr yields at 0.679% - Who is nuts in this game?

N

Nighthawk

Yep, gentlemen and gentle women,

US bond money managers must have lost their mind. US core inflation is running at 2,3% and "Chicken Yellen" (yep, that´s how Tier1 trading desks are calling her) gets mega dovish at the last meeting. The reason is clear: everybody is afraid of China´s "restructuring" and is a mega mess. Nevertheless, Volcker would have never acted like "Chicken Yellen" does!

Where are the old school, hardline central bankers when you need them? America is calling you! Get rid of the chickens!

Core INflation.JPG

Yellen Chicken.png
 
2y notes respond more to expected monetary policy than to inflation (unless that inflation is expected to affect policy). The more relevant yields are the 10y and specially the 30y. The reason they are low is because inflation expectations are low. expectations matter more than current figures
 
So, the Wall Street braniacs throw other people´s monies out of the window because they "EXPECT" lower inflation going forward. We all understand that.

That´s what these clowns are paid for: burning other people´s monies.

Meanwhile there is nothing close to "risk premia" in bond markets anymore. Where are just old school bond traders bombing Treasuries and Notes into oblivion to show the FED who the master is?

LOL!
 
Nighthawk said:
So, the Wall Street braniacs throw other people´s monies out of the window because they "EXPECT" lower inflation going forward. We all understand that.

That´s what these clowns are paid for: burning other people´s monies.

Meanwhile there is nothing close to "risk premia" in bond markets anymore. Where are just old school bond traders bombing Treasuries and Notes into oblivion to show the FED who the master is?

LOL!
More...
I tried, man... I ain't got no fingers no more.
 
Nighthawk said:
So, the Wall Street braniacs throw other people´s monies out of the window because they "EXPECT" lower inflation going forward. We all understand that.

That´s what these clowns are paid for: burning other people´s monies.

Meanwhile there is nothing close to "risk premia" in bond markets anymore. Where are just old school bond traders bombing Treasuries and Notes into oblivion to show the FED who the master is?

LOL!

With other words: we need a BOND REVOLUTION and kick Jeffrey Gundlach and Bill Gross into their ARSE!

:=)))
More...
 
10 year inflation breakevens have risen sharply from 1.2 to 1.6

https://research.stlouisfed.org/fred2/series/T10YIE

Media prints that the Fed is now acting as the global central bank and its China, Europe, "them", but the US is just fine.
We are in it together and deflation( look at last quarter 2015) expectations spiked with the feds stated course , dot plots, etc at that time. 2-3% inflation , measured , would be super with the fed I would think. That chart alone was worth a change in tactics alone. Right? Well, maybe.

I just saw the Daal Post above and this seems to be inline with what he is saying.
 
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