United States

Time To Buy Bonds?

Macroeconomics
328 Views, 24 Jun 2022 07:35
EXECUTIVE SUMMARY
  • In yesterday’s Senate Banking Committee hearing, Powell brought his hawkish stance to new highs: a strong economy underpinned by healthy levels of consumers’ savings, 100 bps hikes not off the table, and to top it off a good likelihood the Fed will actively sell (!) mortgage-backed securities from their balance sheet.
  • Well, there is a big news: for the first time in 8 months, the bond market isn’t compounding Powell’s hawkish rhetoric.
  • Instead, fixed income investors have become loud enough we can almost hear them ask one big question: a recession is becoming increasingly likely, so what are you going to do about it J-Pow?

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Former head of a $20 bn Investment Portfolio and passionate global macro investor. I write The Macro Compass, a financia... 

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