04-15-2024 “Everybody’s Talking At Me” Bears Listen to the “Conflict Conversation”
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Everybody’s Talkin’ at Bonds.
They don’t hear a word they’re sayin’
Only the echoes of bears’ minds.
The US, king of deficit-spending, continues to see sticky inflation, with the long-term expectation at 3%. Meanwhile, its dependent prince, the EU, sees slipping wages and inflation. So, the ECB is expected to ease in June.
Unless the conflict in Gaza becomes an overt war between Iran and Israel, the bears can reach 5.25 in the 10-year yield. Conversely, the hope to go below 4% lies in a global recession and liquidity troubles. For now, the bears are:
Skipping over the Fed’s ease like a stone.
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Song: Everybody’s Talkin’ (1966) Fred Neil