Lookout.
Strongest negative correlation between gold & yields ever!
Completely unsustainable.
The Fed’s printing machine is officially on.
Gold probably at early stages of a bull market & yields likely bottomed.
It's all fun and games until monetary policy comes at a cost. pic.twitter.com/Ynsg4wb68l
— Otavio (Tavi) Costa (@TaviCosta) December 12, 2019
READ: NY Fed Statement Regarding Repo Operations
Details:
-Extra longer-term repo op of $50B
-12/30: $75B op that settles 12/31, matures 1/2
-12/31 and 1/2: overnight ops of at least $150B*FED PLANS $365B OF TERM REPO OPS TO PROVIDE FUNDING THROUGH JANhttps://t.co/PYj736UBaj
— Brian Chappatta (@BChappatta) December 12, 2019