Blain: “The Bond Market Has Become A Series Of Crashes Followed By Rallies”

Submitted by Bill Blain of Mint Partners
Blain’s Morning Porridge – Why Bond markets are going down and Markets have no memory
‘And everything around her is a silver pool of light, the people who surround her feel the benefit of it. It makes you calm…’ Before delving into the collapse in global bonds on tightening speak, the improving prospects for real policy drivers and tax-cuts out of the US, wondering what the stock market is trying to tell us, and all the other madness likely to dominate our trading day.. I have to admit to an ever-so-slightly fuzzy head.
I’m not a Chelsea fan, but one of my clients is. Since he didn’t have time for a trip to Madrid for last night’s game, we watched it at Stamford Bridge instead. Yep, a gang of us were the only people in the stadium last night (which, to be honest, is a most enjoyable alternative to being surrounded by a pack of ravening Chelsea fans!) Although I’m a closet Gunner, it was a marvellous evening – made better by the last kick of the ball victory! (And that is absolutely the last time ever, and I mean ever, I will ever write something nice about Chelsea! )
Back in the real world, it’s a combination of the recent Yellen hawk-talk on a December hike and the prospects Trump will get his tax-cuts and modest reforms passed that have pushed down Treasuries and hiked up the dollar. Rest of global bond market is following in their wake on anticipated global recovery.

This post was published at Zero Hedge on Sep 28, 2017.