- I know it's only three weeks into the new year, but the unmistakable trend in bond land thus far has been the 'Reflation Trade.'
- As I've noted before, the fundamental and technical analyses still point toward the UST 10-Year yield rising from where it stands now.
- And if the economy bounces back sooner than anticipated due to the potential for another hefty fiscal stimulus package (do I hear $1.9 trillion?) to be enacted once the Biden administration takes hold, my recommendation would be to take out some rate-hedge insurance.
For further details see:
A Novel Way To Play The Reflation Trade