Questioning ‘Life Above 2%’ And Pondering The ‘Long-Dated Rates Catastrophe Option’
"As traders head into 2020, the question is, is there life above 2%?", a Bloomberg article previewing the holiday-shortened week muses.
The gist of it is simple: 10-year yields stateside have looked poised to rise above 2% and beyond on several occasions over the past eight weeks or so, and we've never managed to get over the hump.
A week after Donald Trump first tipped the "Phase One" trade deal with China in October, Boris Johnson managed to cobble together a Brexit deal that was some sembla
It is amazing, the CB distortion. 12, 24, 36 years ago 10 yrs would be 4-6% and “bond vigilantes” would talked about incessantly in the media. Today we see no real yield yet the stock market says something different. Amazing the world we live in. This will not end well but may “this time is different”.
The consequences…. were yields to go much higher are untenable to political entities and CB s ….The this time is different part…. is that the narrative is closely controlled by the media and political apparatus currently in place , especially when the the system is painted into a corner.
Commentators to a large part interpret what they are seeing , and the machines roll on in a flow based world unique to to itself…The question is not what happens next but when it actually occurs…Could be a very long time , for reasons unclear at this point as to the outcome.. I for one see it being from the slow turnings in the geopolitical realm…
So what we have here is Mr. Market’s version of the “Deep State.”