Re: Inflation and Interest Rates
Zeev,
So far it's not so good. Here's yesterday's news:
WASHINGTON (CBS.MW) -- The housing boom exploded in January, but factories couldn't get out of gear. Housing starts rose 4 percent to a seasonally adjusted annual rate of 1.804 million, the highest in more than 12 years, the Commerce Department reported Wednesday.
And here's today:
WASHINGTON (CBS.MW) -- Inflation erupted unexpectedly in January as the Producer Price Index surged 0.5 percent, the Labor Department said Thursday. It was the biggest jump in the PPI since October 1996.
Well there are a few more numbers coming out this week that may show inflation is in check, but we are not off to a good start.
Considering the above news, I'm surprised the bond and equities market haven't sold off more. So good old liquidity still appears to be strong. But maybe the actions by BOJ lately are helping us out? With their short term rates approaching ZERO, and the yen being talked down, the US debt markets must look extremely attractive!
Zeev you've mentioned a couple of time that the Japanese Big Bang will help hold US rates down. Do you still think they will be buying up US treasuries as a direct result of the Big Bang? I really can't find much info on this and I'm looking for some hopeful signs it's coming. Anyone else have anymore news on the Big Bang?
Thanks,
MikeM(From Florida) |
