FLGV News and Press, Franklin Liberty U.S. Treasury Bond From 08/29/21

In the absence of the 42-day Cash Management Bill, all that demand for it has to go somewhere. Yellen’s Department will try to supplement next Tuesday by reopening the August 10 issue of the 42-day, selling $45 billion of what will be essentially a 21-day CMB. It isn’...

A softening of sentiment indicators comes as rates already sit close to the bottom of their recent range. Positioning might push them lower still, but EUR rates, in particular, are already consistent with more central bank support next year. The belly of the US curve trades cheap,...

Factors driving inflation higher in the last few months eased in July. Orlando: It takes a long time for the supply, demand mismatch to even out. Orlando: Economic recovery the most important factor for overall inflation. For further details see: Has The U.S. Inflation W...

The 10-year Treasury yield declined a bit during the Afghanistan crisis, so all eyes are now on the Fed to see how new realities will impact monetary policy. The Fed released its latest FOMC minutes, which revealed a disagreement within the FOMC about when QE tapering will begin. On T...

Weak PMIs mean expectations of strong taper warnings at Jackson Hole are being pared back. This could be a mistake, but pessimism means even a hawkish Fed would be greeted with a modest market reaction. In the meantime, supply skews rates moderately higher this week. For fur...

Markets are so hopelessly addicted to stimulus that anything short of a commitment to zero interest rates and QE forever could burst the bubble. What makes the current cycle different this time is headline inflation rising at a record pace. The question is whether officials will b...

The media wants you to believe that the tapering of Quantitative Easing is a big deal with a potential bad outcome (“if it bleeds, it leads”). The exact opposite is the case. Covid Delta as a weapon of mass economic destruction - another media obsession. Is this round tw...

Falling growth does not mean the economy is contracting. It merely means that the rate of increase is slowing. How much it slows is something we can't know yet, but it is exactly what we've been expecting for months as we watched bond yields drop. One reason I think the current enviro...

What is the Federal Reserve going to do? Where are interest rates going? How does the political landscape affect it all? It's a lot of moving parts - stimulus, taxes, debt ceiling, tapering. Another piece is the looming supply crunch that we might see in the Treasury market. All of th...

The Fed issued minutes from the most recent FOMC meeting, and the release caused a bit of a kerfuffle in equity markets. The consternation came from the revelation that a majority of Fed officials think tapering of the bond buying program could begin before the end of this year. Other...