Posted on 01/21/2023 7:53:35 AM PST by millenial4freedom
Waning volatility in the U.S. bond market has helped spur a rally in stock markets around the world, according to the latest research note from Deutsche Bank’s Jim Reid.
Reid, head of thematic research at DB, pointed out that bond-market volatility, as measured by the ICE BofA MOVE Index, appears to have peaked in October (see chart), just as expectations for the terminal fed-funds rate — the level at which the Federal Reserve is expected to pause its most aggressive cycle of rate hikes since the 1980s — stabilized around 5%, where they remain.
(Excerpt) Read more at msn.com ...
They broke it for a while …..
Bond Market really calls the shots. FED has to follow if it moves much.
Bond Market looking forward instead of driving by looking at hood ornament. FED already telegraphing a .50% raise followed by a .25% and a pause. That can change of course, but that’s what Bond Market expects given its trading action lately.
You can’t break the back of inflation without higher interest rates and economic contraction.
Yep it’s necessary to break it cause the idea to fix it is a new tax which cannot be named as a tax ……
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