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Over The Line! Who Will ‘Tolerate’ Higher Long-End Yields?
Over the weekend, in "SpongeBob SquareBanks", I talked at some length about duration absorption by central banks in the back half of the year.
I realize that's something of a dry subject (and there's a sponge joke in there somewhere), but it's crucial. Governments' borrowing needs are rising in light of stimulus and other virus relief measures, and to the extent that's funded at the long-end, it ostensibly has the potential to push up yields and steepen the curve.
There are estimates for the m
Stay gold, pony boy
Smoky, my friend, you’re entering a world of pain.
Such a strange, twisted and wonderful world Central Banks have gifted us. Everything expands towards infinity, the Fed’s balance sheet, the number of Covid cases in the US, the market multiples. Has Dickens ever been more apropo? “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness…”