Show notes:
TMSpotlight:
I don’t mind correcting here, waiting all the time.Bonds are waiting for the Fed to see inflation crashing down. Massive US debt supports global bank reserves but weakens long-term economic health.Additionally, the decline in the Fed’s reverse repo balances put liquidity levels at risk. So, before the Fed eases rates, it will reduce its selling of Treasury securities, fueling a sharp decline in long-term rates.The bear correction prepares the bull market to run.The drop was just what bonds needed. (Just What They Needed.) They needed some time to breathe.————————–Song: Just What I Needed (1978) The Cars