The Federal Reserve is already funding > 50% of new UST issuance. They are becoming stuck in this role as there is minimal interest overseas and demand is falling locally. Rates only go up from here, no negative
— Nicholas Ramos (@NickVRamos) August 13, 2020
US yield curve steepens due to economic optimism and a flood of new bonds. US 5s30s yield spread is at the widest in more than a month after a disappointing 30y auction. pic.twitter.com/gMVxckmGfF
— Holger Zschaepitz (@Schuldensuehner) August 13, 2020
POWELL: We have nothing to do with today's wealth inequality, that stuff started over 40 years ago.
POWELL: We're buying Apple and Berkshire corporate bonds because companies need money right now.
They're not even trying to hide it.
— Brad Huston (@BradHuston) August 13, 2020
If you're surprised at how well the stock market is doing, note that companies themselves are surprised at how their own businesses are rebounding
Check this out from Deutsche Bank, summarizing the earnings calls. pic.twitter.com/sk3lSJfarG
— Joe Weisenthal (@TheStalwart) August 13, 2020
A weaker than expected 30-year Treasury auction (one day only the Fed will bid) sent both bond yields and gold prices rising, indicating that inflation is the risk investors are looking to take off. Inflation is bad for bonds but good for #gold. If so, things will get ugly fast.
— Peter Schiff (@PeterSchiff) August 13, 2020