FLGV News and Press, Franklin Liberty U.S. Treasury Bond From 03/18/21

U.S. Fed holds rates steady and reiterates no rate hikes through 2023. Colbourne: We're in a new Fed framework of Average Inflation Targeting (AIT). Colbourne: Expect to continue to see the U.S. dollar weaker particularly against the Canadian dollar. For further details see:...

Chair Powell glitched just a tad yesterday, but the accomodative promise remains resolute. The BoE is on a not too dissimilar wavelength, while the ECB is just a bit... well, stuck. All doves, but different types. The ECB needs to be a true dove. The Fed probably does not have to ...

Rising bond yields are creating uncertainty around equity valuations. The increase in VIX appears to be more contained versus previous market shocks but is masking violent rotation happening underneath. Xu: Active management is crucial in this part of the cycle. For further ...

No rate or QE change likely from the Fed - that's the easy bit. But will they hike the rate on excess reserves? Not expected (but they actually should). Will they extend the SLR break for US banks? They likely will (but probably shouldn't). Will the dot plot move? Likely not much....

Since we closed at a fresh 52-week high for both the 2-10 spread and the 10-year Treasury yield last Friday, further rises in long-term interest rates will likely cause a bigger rotation out of technology stocks and into financials, industrials and the energy sector. Banks absolutely ...

Real yields of reserve currency sovereign bonds are negative and the lowest ever. Bonds have been in a 40-year bull market that has rewarded those who were long and penalized those who were short, so the bull market has produced a large number of comfortable longs who haven't gotten s...

Most of the selling pressure in the popular NASDAQ names and the hot Chinese ADRs can be traced to "thematic investing" ETFs that specialize in "disruptive technologies". This is not the first time that the ETF industry has inflated or deflated the price of hot stocks. However, as lon...

The inflation number has not gotten out of range, despite the breathtaking increase in the monetary base. The mainstream includes all causes of rising prices in their definition of inflation. We differentiate nonmonetary forces pushing up prices from the monetary forces pushing them d...

We lay out three reasons why we see a strong economic restart, rather than a normal recovery, and believe markets still underappreciate its size and speed. U.S. Treasury yields hit 13-month highs. We see the recent rise in real yields as justified given the growth outlook and remain t...

Doctor Doom, Henry Kaufman, former chief economist at Salomon Brothers, is back and "... sees danger in the markets and economy." The secular bear market that took hold of the index in 1966 bottomed in the fall of 1974, breaking below 600 on the industrials for a brief period. That be...