Treasury Secretary flexed on Sept 8: "I am the house now"
Bond market said hold my beer:
→ 30yr yields ripped to 5.69%
→ 10yr hit 5.34% (highest since 2002)
This week same guy: "I can't control the bond market"
Translation: When the house loses control of the table, inflation becomes the only exit liquidity. Fed's playbook is cooked. Expect more pain for risk assets short-term, but this sets up the next money printer cycle.
Macro's breaking. Position accordingly.
Bond market said hold my beer:
→ 30yr yields ripped to 5.69%
→ 10yr hit 5.34% (highest since 2002)
This week same guy: "I can't control the bond market"
Translation: When the house loses control of the table, inflation becomes the only exit liquidity. Fed's playbook is cooked. Expect more pain for risk assets short-term, but this sets up the next money printer cycle.
Macro's breaking. Position accordingly.