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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: SouthFloridaGuy who wrote (20009)12/31/2004 8:33:02 AM
From: Wyätt Gwyön  Read Replies (1) | Respond to of 116555
 
I'm more of a believer in Mish's bond prognosis. The Fed will continue to raise the short-end as stagflationary pressures manifest, the yield curve continues to flatten because the long bond won't budge, much to everybody's shock.

not saying it will happen, but one possible exception to this scenario is if US short rates go up significantly, so that USD becomes stronger, Asian-mercantilist-CB bond buyers could ease off, with the result that long yields rise. this could become self-perpetuating as the higher yields will tend to strengthen USD.