NEW DOUG NOLAND WRITING @ prudentbear.com
"Bond yields had diverged too much from the reflationary realities evidenced by inflating equities prices. The bond market must look at stocks – and central bank dovishness - with rising apprehension. But at least thus far, rising Treasury yields have not incited a widening of Credit spreads.
I believe U.S. reflation will be in jeopardy when a jump in yields occurs simultaneously with increasing risk premiums and waning Credit availability. And I wouldn’t be surprised if such a scenario unfolds in response to renewed dollar weakness. Considering the backdrop, call me a King Dollar skeptic."
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment