They are giving us the play-by-play on why the stock market is puking (click the headline to go to Bloomberg and read all about it).
It’s all about 3% on the 10yr ladies and germs. A nice round number somewhere around the 10yr’s would-be limiter (remember, these things can jiggle a lot in month).
The real Continuum, the 30yr, has not even been banged yet. Its target has been 3.3% and currently TYX sits below 3.2%.
Earlier in the week I posted an article called Inflation, With a Shelf Life but I had no idea the shelf life might be this close in. Last week a lot of hoopla was made about inflation trades (including right here by this writer), but what if just maybe it’s not full frontal von Mises Crack-Up-Boom in the offing, but the other thing… where the Continuum holds yet again?
For now it’s the old RISING YIELDS, 10yr @ 3%!!! promo driving down stocks. Let’s see what the Continuum’s limiter has to say about that promo. It could be after all, that what the market fears is another failure of inflation.
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