InvestorsHub Logo
Followers 30
Posts 8769
Boards Moderated 0
Alias Born 12/15/2004

Re: None

Monday, 05/09/2022 9:20:17 AM

Monday, May 09, 2022 9:20:17 AM

Post# of 2588
Buy TBT on any dips. Interest rates are going to rise. It is inevitable. Once the FED becomes a net seller of treasury and mortgage backed debt, essentially competing with the US Treasury that has to continually issue debt and roll over old debts. Who is going to buy them? The Yen and Yuan have been dropping like rocks. Euroland is in a stagflationary spiral made worse by the sanctions against Russia. Smart countries probably want to de-Dollarize after seeing what the US is capable of in terms of freezing and stealing assets of disfavored nations. So interest rates have to rise to a level where the return is at least neutral with regard to purchasing power. In other words the yields on Treasuries will rise to a level at least close to the Inflation rate. The faster the Fed can get the CPI down the less the rise in Interest rate. I estimate a yield of 5 - 6% is probably where rate end up. It will take that level of rise to bring down inflation at the margins. And that is only in regard to official CPI which is about 8 points lower than the real inflation rate as measured by ShadowStats.

https://www.zerohedge.com/markets/bloodbath-futures-yuan-tumble-10y-yields-soar-global-stagflation-fears

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.