PLW - Stocks And Bonds Starting To Tussle

• The Fed has painted itself into a corner where it is now pressured to start tapering its quantitative easing earlier than it had been indicating.
• Now we are seeing signs that the bond market isn’t liking the news out of the last FOMC meeting, which hinted strongly that the Fed will start to taper its massive purchases of US Treasuries this year.
• At 1.5%, 10YR Treasuries on Monday just poked their head above the upper bound of their recent trading range, indicating a possible breakout.
• As the Fed does start relaxing its white-knuckle grip on the Treasury market, you can expect to see stocks struggle more against the current of money that will eventually flow into bonds with higher yields.

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