A $2 Trillion Debt Case for Higher Rates for Longer
The bond market has spectacularly turned upward in the developed world, pushing yields down and perhaps too quickly forgetting about the soaring budget deficits. In...
Tag: FED
A New Attraction for Emerging Dollar Debt
Borrowers from developing countries are rushing to sell debt, capitalizing on increased investor appetite and the search for high yields.Mexico led the way, starting the...
Tense and Uncertain Equity Markets
The S&P 500 ended its longest streak of weekly gains in two decades. It was different from how Wall Street hoped to start 2024.Investors, who...
The Fed still anticipates that interest rates will remain high for some time
Policymakers agreed last month that it would be appropriate to maintain a restrictive stance “for some time” while acknowledging that they were likely at the...
Short-term maturities will benefit from the Fed’s easing in 2024
Money market fund holders have a new reason to turn to short-term bonds. The best way to play the Federal Reserve’s pivot towards monetary easing...
Is the Fed right to lean towards investor optimism?
The Federal Reserve now believes it can have the best of both worlds: contain excessive inflation without pushing the economy into a recession. Powell surprised...
Who is right: the market or the FED?
Long-term Treasury bond options show that the outstanding open positions predicting a bond rally and lower interest rates are 2.5 times larger than those protecting...
The U.S. inflation and the market euphoria
The core Consumer Price Index, which excludes the costs of food and energy, increased by 0.2% compared to September. The overall indicator remained stagnant, held...
What scenario for interest rates in 2024?
The market has once again become hopeful. The Fed has completed its job, and we can now contemplate a rate cut in 2024 and, more...