With asset markets selling off across the globe this morning, the multi-trillion dollar question is whether US Treasuries (as a benchmark for other interest rates) are now breaking into a new cycle of higher rates, or whether yields will continue to be capped within a secular low rate theme caused by slow global growth after the credit bust. We are open to either outcome, but it seems most likely that low rates today are a secular theme that will be extended a while longer as the world languishes through this third global recession since 2000. We watch with great interest.
Source: Cory Venable, CMT Venable Park Investment Counsel Inc.
Pimco Co-Chief Investment Officer Bill Gross reacts to Ben Bernanke’s news conference and Fed statement Here is a direct link.
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