Fed Minutes: There Will Be Blood (Global Sovereign Yields Rise On Fed’s Hawkish Message)

Confounded Interest ^ | 08/21/2013 | Anthony B. Sanders

[whitedog57]

Here are the minutes of the most recent FOMC meeting.

Federal Reserve officials were “broadly comfortable” with Chairman Ben S. Bernanke’s plan to start reducing bond buying later this year if the economy improves, with a few saying tapering might be needed soon, minutes of their last meeting show.

In other words, it was a hawkish set of minutes pointing to tapering.

The reaction in the US Treasury 10 year yield?

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And agency MBS prices fell about 12 basis points.

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And the globe is awash in blood (as in rising sovereign yields).

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Here is a photo of Ben Bernanke watching the taper.

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[whitedog57]

There WILL be blood!

[familyop]

If they keep it up, U.S. bonds are going to crash and spread an interest rate hike germ. Much of it is about currency fixing, too, though. When they do it, stop buying stuff from the neighbors for a while: a better response than being laid off.