This is clear example of the liquidity trap. They should study their God Keyness a bit better. If you cut your rates too low, your monetary policies become impotent.. pic.twitter.com/MfDBLaIh8P
— Data Patron (@DrahoslavP) February 25, 2021
10yr yield 1.54% stocks getting hit hard… PROBLEM, REACTION, SOLUTION…The Fed. will institute yield curve control.. all this is part of their real mandate which is to BUY IT ALL. GM
— Gregory Mannarino (@GregMannarino) February 25, 2021
Traders are betting U.S. inflation will surge in the short term before ebbing longer-term. The 5-year inflation rate is now above the 10 year one for the first time since 2008. The gap between the two has never been as big as it is now. t.co/GmSuXW3FWq pic.twitter.com/YCs30pTISD
— Lisa Abramowicz (@lisaabramowicz1) February 25, 2021
bond vol first, then equity vol
— Alastair Williamson (@StockBoardAsset) February 25, 2021
There was a mysterious collapse in U.S. swap spreads on Wednesday. Lots of theories out there, mostly questionable.
— Stephen Spratt (@StephenSpratt) February 25, 2021
The worst 7-year auction in history?
*Tail was 4.4% (avg to low yield) worst since to 2009 (when data begins)
* Bid2cover was 2.04% (blue) also the worst (lowest) since 2009
* % of indirect bidders=38.1%, lowest since 2013.
This is how auctions look when bonds are radioactive pic.twitter.com/TX41SzRhal
— Jim Bianco (@biancoresearch) February 25, 2021