Wouldn’t you know, T-bonds continue to posture to rally

Amid hysterical inflation headlines, Treasury bonds remain firm

Of course, inflation is yesterday’s news. That was the news that bonds had been reporting since mid-2020 when yields bottomed and turned up, culminating with a breakout from the Continuum’s limiting moving averages and a possible halt here below the key November, 2018 high.

Now bonds are reporting something else. It’s no surprise that as the inflated stock market weakens Treasury bonds (yeah yeah I know, valueless and denominating unpayable debt thought they are) are gaining the liquidity bid by casino patrons. And don’t look now but inflation expectations are weakening. All during yet another inflationary hysteria week.

It says here (in my mind) that the Fed needs a liquidation of asset markets to bail its ass out from the fallout of the inflation it birthed in 2020. So far, so good and bonds are the logical tool to receive that liquidity. Don’t worry gold bugs, that’s a tool too – and it’s one that actually has and holds value.

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