forget cftc conspiracies - look at us bonds, page-2

Here's Evans-Pritchard writing about this today:

"Yields on 10-year Treasuries have jumped 30 basis points in two weeks to 3.94pc. Alan Greenspan called it "the canary in the mine" for US sovereign debt.

The yield spike is happening even though core inflation (trimmed mean PCE) has been dropping like a stone, touching a record low of 1.04pc in February. The Fed's Monetary Multiplier is languishing at 0.815, a flat tire...

... Mr Bernanke is taking the fateful decision to knock away the props of the mortgage market even though the M3 broad money supply has been contracting at an epic pace of 6pc since September. If M3 gives early warning of six to 12 months, beware...

My fear is that the Fed will repeat the mistake in this case by reversing QE too soon."


Full article at:

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/7553511/Deflation-on-the-prowl-as-Bernanke-shuts-down-his-printing-press.html

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