Recession Watch – Fall 2017

Tuesday, June 6, 2017
By Paul Martin

by EconomicPrism’s MN Gordon, via Acting-Man.com,
ZeroHedge.com
Jun 6, 2017

One Ear to the Ground, One Eye to the Future
Treasury yields are attempting to say something. But what it is exactly is open to interpretation. What’s more, only the most curious care to ponder it. Like Southern California’s obligatory June Gloom, what Treasury yields may appear to be foreshadowing can be somewhat misleading.

Are investors anticipating deflation or inflation? Are yields adjusting to some other market or external phenomenon, perhaps central bank intervention?

So far this year, and in the face of the much-ballyhooed prospect of Trumpflation, the yield on the 10-Year note has gone down. Not up. On January 1st, the 10-Year note yielded 2.44 percent. As of market close Thursday, the yield was 2.22 percent.

At first glance, it appears there’s nary a care in the world about inflation. Conjecture, says there’s an expectation that Trump will be unsuccessful at getting his spending bill through Congress. Without Trump’s fiscal stimulus, goes the thinking, the potential for inflation becomes muted.

The Rest…HERE

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