Gucci did say that asset buying other than bonds was an option for further QE and I don't think things are 'back to normal' in Italy. So if the ECB isn't going bananas buying bonds to keep rates down what does that indicate? And when you're talking about a $2.7 trillion balance sheet expansion the depth for assets other than bonds looks beautiful (like sunshine in the eye of a cyclone).
And next week the FED should put up rates and not ecessarily by 25 points either, it could be 50 points. Remember that overall, this year has had stupid bond valuations ie. when you'll never recoup your capital when redemption and interest are added. That's stupid, more like the peak of a bubble....which it was.
So there's a lot of nervous investors and institutions out there waiting to see what the FED will do. What the new Trumpy administration will do from the 4th January will probably talk up the economy and it's planned plans for a miracle.
The markets could force the FED's hand early next year as well. That's about as simple as I can get a very complex view.
The bond market is like a frightened cat.
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Gucci did say that asset buying other than bonds was an option...
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