US yields not buying Fed’s latest “stimulus”

“QE-infinity” is apparently not convincing the US bond market. After rising this summer on the expectation of more Fed easing, this month 10-year yields are once again signaling deflation for the foreseeable future. Central bank jaw-boning aside, this chart shows that capital is still flowing into the relative capital safety of US bonds.


Source: Cory Venable, CMT, Venable Park Investment Counsel Inc.

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5 Responses to US yields not buying Fed’s latest “stimulus”

  1. JW says:

    Second that. I saw the same thing from my side of table too. Did Mr. Bernanke finally find a way to tame the QE beast? Another observation I have is that QE3 seems to do more for the EU bond yields than the US’. I should like to find out how much of the “open market US MBS” is going to be purchased from the EU zone? Langley, BC

  2. Rolling Stall says:

    Deflation? Certainly not in food and gas prices….a trip to the produce dept is frightening, especially for our newly-minted young adults who have never had to deal with these astronomically high prices. REVOLUTION.

  3. John C says:

    Don’t get caught up in the terms ‘deflation’ and ‘inflation’. They mean different things depending on the speaker. Just know that your money’s purchasing power is declining. And now the conditions are in place for this process to accelerate. The only way out of this debt mess without a collapse is to silently steal the real wealth of the masses (witness housing in the US). The primary techniques employed are debt and monetary debasement. But remember, inflation does not destroy wealth; it transfers it.

  4. John C says:

    Hey, Danielle.

    Speaking of inflation and deflation, has anyone ever seriously considered the utilization of the stock market as a mechanism to control money supply? I mean, the stock market is an excellent inflation sink, soaking up a great deal of money and keeping it out of the real economy. However, during a major correction a great deal of value can evaporate, so a crash is inherently deflationary. If Ben and the boys wanted to shrink the money supply to keep a lid on inflation, wouldn’t a stock market crash be one way of doing this?

  5. mommybomm says:

    Debt upon debt to pay for debt? Insanity. This market is preparing to crash, to sink the Obama/Bernanke ship. Thank God.

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