tag:blogger.com,1999:blog-6616959642391988608.post6881070970664354416..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: The bond market is unwinding its doom and gloom fearsScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-6616959642391988608.post-75399017220890447042013-06-23T06:40:45.670-07:002013-06-23T06:40:45.670-07:00The Fed took securities off the secondary market. ...The Fed took securities off the secondary market. Other things equal, this lowers the demand for loan funds & increases the supply of loan funds (not necessarily effecting rates as you say though, as inflation expectations are historically, the most dominant factor determining interest rates).<br /><br />Rates spiked because the 24 month rate-of-change in money flows spiked again. Now Salmo Truttahttps://www.blogger.com/profile/13910212017849902362noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-16774116387401420642013-06-21T15:50:07.530-07:002013-06-21T15:50:07.530-07:00"Yields were low because the market expected ..."Yields were low because the market expected the economy to be very weak for a long time—not because the Fed's purchases made them low."<br /><br /><br />Perception is everything. I think this statement should be replaced with "Yields were low because the market expected the Fed to continue making asset purchases." Market participants knew the Fed was on their side. Of pufferhttps://www.blogger.com/profile/02594945926620839004noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-10231184001796553882013-06-21T07:38:33.524-07:002013-06-21T07:38:33.524-07:00This is a wonderful post Scott. You have been rig...This is a wonderful post Scott. You have been right on. Thanks for your wisdomAnonymoushttps://www.blogger.com/profile/13396169470993079049noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-13555234720100395912013-06-20T20:07:58.122-07:002013-06-20T20:07:58.122-07:00And so it is that despite the Fed's purchases ...And so it is that despite the Fed's purchases of $45 billion of Treasury notes and bonds every month, and $40 billion of MBS every month, 10-yr Treasury yields have jumped some 80 bps and MBS yields have jumped almost 100 bps--Scott Grannis.<br /><br />Actually, the QE effort may be stimulating the economy, and that is leading to more optimism and the possibility of higher interest rates. <brBenjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-10943924791048417592013-06-20T13:34:30.656-07:002013-06-20T13:34:30.656-07:00I take the below over at the mises as just as appl...I take the below over at the mises as just as applicable to the Federal Reserve.<br /><br />[In his second chapter, "The Coming Slavery," Spencer calls attention to the existence of what he calls "political momentum" — the tendency of State interventions and similar political measures to increase and accelerate in the direction in which they have already been set going. Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-19356837164169574522013-06-20T13:21:50.911-07:002013-06-20T13:21:50.911-07:00This comment has been removed by the author.Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-89640350123749200282013-06-20T12:39:13.379-07:002013-06-20T12:39:13.379-07:00Ah, thanks, now I understand. The stock market is ...Ah, thanks, now I understand. The stock market is down because of improved economic outlook. And it has nothing, I repeat nothing, to do with the Fed. Was a pure coincidence.Gloeschihttps://www.blogger.com/profile/10705125909506053628noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-10975113753882927022013-06-20T11:48:51.357-07:002013-06-20T11:48:51.357-07:00The action in the bond and gold markets the past m...The action in the bond and gold markets the past month or so is one of the best examples ever of how market anticipate the future by 6 to 9 months.<br /><br />And Scott Grannis did a great job as well!!Williamhttps://www.blogger.com/profile/04418491109912775561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-75184339004637719822013-06-20T11:18:20.708-07:002013-06-20T11:18:20.708-07:00Slow growth for the foreseeable future. Life is g...Slow growth for the foreseeable future. Life is good.sgt.red.blue.redhttps://www.blogger.com/profile/08132657702786638326noreply@blogger.com