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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.
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Song: Just What I Needed (1978) The Cars
https://www.youtube.com/watch?v=Z5-rdr0qhWk
Les Parker, CMB
Former senior vice president of a national technology and service company.
Les Parker is the Managing Director at Transformational Mortgage Solutions Advisory Board Member for Ainsworth Advisors; and has served as the Senior Vice President of Industry Relations and Consulting at LoanLogics, a technology and services provider focused on improving mortgage loan quality, performance, and reliability throughout the loan life-cycle. His responsibilities included managing the company’s life of loan analytics and monitoring capabilities, overseeing consulting services, contributing to the strategic planning team, and communicating with industry leaders to develop and maintain positive relationships. He focused on identifying threats and strategic opportunities.
Parker has executive mortgage banking experience in capital markets, servicing, operations, production, and financial management. Parker has served as director of the largest private issuer of CMOS. His educational background covers music, religious studies, mortgage banking, mathematics, and business administration. Parker holds a BBA in Finance, and other degrees, and has held numerous securities licenses. Parker is a Master Certified Mortgage Banker, a designation conferred by the Mortgage Bankers Association. Parker writes, speaks, and provides audio content, Since the late 1980s, he publishes a daily newsletter connecting global macroeconomics to the US interest rate movement.