http://www.bloomberg.com/news/articl...rout-in-europe
"Inflation in the U.S. has recently shown signs of recovery, as well, as oil prices stabilize after a sharp decline. Because longer-dated debt is hurt worst by rising prices, the difference between the yield on two-year Treasuries and 30-year Treasuries rose to its highest level since December.
The market is building in modestly higher inflation expectations, said Thomas Urano, a bond-portfolio manager with Sage Advisory Services Ltd. in Austin Texas, which manages $11 billion in assets. Inflation could bottom out here or drift higher. "
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Inflation in the US and, perhaps surprisingly, in the Eurozone, ... will return. The Fed will raise the ffr when the signs of that are clear. Maybe Draghi will even cut short the ECB's QE program. The insane trajectory of interest rates down into negative yields has begun to reverse. These are/will be good developments and mark a progression for these economies up out of crisis mode. I am not sure of the time frame for these things to come to pass but I suspect it will be faster than many expect. The increasing rumor, then the actual fact of rate raises will spell trouble for the bull market in both equities and bonds. I hope I have my act together enough to catch that move.....
"Inflation in the U.S. has recently shown signs of recovery, as well, as oil prices stabilize after a sharp decline. Because longer-dated debt is hurt worst by rising prices, the difference between the yield on two-year Treasuries and 30-year Treasuries rose to its highest level since December.
The market is building in modestly higher inflation expectations, said Thomas Urano, a bond-portfolio manager with Sage Advisory Services Ltd. in Austin Texas, which manages $11 billion in assets. Inflation could bottom out here or drift higher. "
--------
Inflation in the US and, perhaps surprisingly, in the Eurozone, ... will return. The Fed will raise the ffr when the signs of that are clear. Maybe Draghi will even cut short the ECB's QE program. The insane trajectory of interest rates down into negative yields has begun to reverse. These are/will be good developments and mark a progression for these economies up out of crisis mode. I am not sure of the time frame for these things to come to pass but I suspect it will be faster than many expect. The increasing rumor, then the actual fact of rate raises will spell trouble for the bull market in both equities and bonds. I hope I have my act together enough to catch that move.....
"If The Fool persists in his Folly he will become wise." - William Blake