12/07/2020 - Yra Harris: Return of the Bond Vigilantes?

“If the U.S. central bank remains RETICENT to move its QE further out in duration — targeting the LONG END of the curve — the BOND VIGILANTES will ride again by continuing to SELL THE LONGEST DURATION BECAUSE IT IS THERE THEY WON’T HAVE TO FIGHT THE FED. The LONG END WILL BE the area of least resistance. How high will the yield on the 30-YEAR BOND have to rise until the FED’S SOMA DESK BECOMES THE IMMOVABLE OBJECT? Mike Temple believes Yield Curve Control will be necessary in the first quarter of 2021. I see no reason to argue.”

LINK HERE to the Blog Post

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