8th December 2021

  • Two-Year Treasury Yields Erase Omicron Drop on Hawkish Fed Bets

Short-dated yields climb as traders bet on a June rate hike

Move helps flatten curve, showing fear remains of policy error

https://blinks.bloomberg.com/news/stories/R3RUHVT0G1KY

  • Pimco Warns Risk of Policy Mistakes From Central Banks Is Rising

Inflation risk premium isn’t fully priced in the bond market

Long-dated Treasuries can still help diversify portfolio risk

https://blinks.bloomberg.com/news/stories/R3R2PGT1UM0W

  • Treasury Dealer Short Positions Another Red Flag for Liquidity

Primary dealers’ net short in front end is biggest since 2017

Barclays says it suggests less demand for off-the-run bonds

https://blinks.bloomberg.com/news/stories/R3QWR9T0AFBI

  • Gundlach Sees ‘Rough Waters’ for Market as Fed Pursues Taper

He says higher borrowing costs poised to crimp economic growth

Billionaire says stimulus artificially propped up the economy

https://blinks.bloomberg.com/news/stories/R3RP31T1UM0X

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For more information please contact Rubrics Asset Management. info@rubricsam.com.