Friday saw the biggest one day interest rate surge- for example https://futures.tradingcharts.com/chart/GE/62 I hope to benefit from what I consider the top mainstream financial illusion: the Fed is in charge and will prevent any but a moderate increase in interest rates by year end 2022- such as 1% (short term rates go from .1% to 1.1%; 10 Year Treasuries go from 1.9% to 2.9%…etc…). By contrast I anticipate the key driver of much higher interest rates will be the utter desperation of the Treasury to successfully auction the enormous supply of government paper to raise the cash necessary to fund this years government deficit AND to find the still more enormous amount of cash to pay off the maturing portion of the $30T Federal debt in an environment of 7% inflation. Note that faced with similar inflation in 1981, the 10 Year T Bond yield peaked at over 15%!
Biggest Interest Rate Surge
Biggest Interest Rate Surge
Biggest Interest Rate Surge
Friday saw the biggest one day interest rate surge- for example https://futures.tradingcharts.com/chart/GE/62 I hope to benefit from what I consider the top mainstream financial illusion: the Fed is in charge and will prevent any but a moderate increase in interest rates by year end 2022- such as 1% (short term rates go from .1% to 1.1%; 10 Year Treasuries go from 1.9% to 2.9%…etc…). By contrast I anticipate the key driver of much higher interest rates will be the utter desperation of the Treasury to successfully auction the enormous supply of government paper to raise the cash necessary to fund this years government deficit AND to find the still more enormous amount of cash to pay off the maturing portion of the $30T Federal debt in an environment of 7% inflation. Note that faced with similar inflation in 1981, the 10 Year T Bond yield peaked at over 15%!