Interesting action in the 10 yr treasury.\u00a0 Fed selling may be showing an impact, though they have only sold $10 Billion.\u00a0 The yield has increased to 2.4%.<\/p>\n

Revisiting my theme, the long bond interest rate should head higher as the Fed sells.\u00a0 This should show up also as a reduction in the excess reserves held on the Fed.\u00a0 As liquidity is drained, I’d expect the Fed to have to purchase short term instruments to maintain the Fed Funds Rate at their target of 1.25%.<\/p>\n

Some expected impacts will be a higher dollar, bearish gold, higher mortgage rates, and a slow down of the economy.<\/p>\n

I find it hard to believe this small sale by the Fed is directly responsible, though the market could be front running, i.e. they take the Fed seriously and are selling bonds (raising interest rates) ahead of the Fed.<\/p>\n

Chart action shows rates are heading higher.\u00a0 Yields violated a declining trend line, came back and retested the old trend line, then moved higher.<\/p>\n","protected":false},"excerpt":{"rendered":"

Interesting action in the 10 yr treasury.\u00a0 Fed selling may be showing an impact, though they have only sold $10 Billion.\u00a0 The yield has increased to 2.4%. Revisiting my theme, the long bond interest rate should head higher as the Fed sells.\u00a0 This should show up also as a reduction in the excess reserves held…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"libsyn-item-id":0,"libsyn-show-id":0,"libsyn-post-error":"","libsyn-post-error_post-type":"","libsyn-post-error_post-permissions":"","libsyn-post-error_api":"","playlist-podcast-url":"","libsyn-episode-thumbnail":"","libsyn-episode-widescreen_image":"","libsyn-episode-blog_image":"","libsyn-episode-background_image":"","libsyn-post-episode-category-selection":"","libsyn-post-episode-player_use_thumbnail":"none","libsyn-post-episode-player_use_theme":"mini","libsyn-post-episode-player_height":"50","libsyn-post-episode-player_width":"200","libsyn-post-episode-player_placement":"top","libsyn-post-episode-player_use_download_link":"","libsyn-post-episode-player_use_download_link_text":"","libsyn-post-episode-player_custom_color":"","libsyn-post-episode-itunes-explicit":"","libsyn-post-episode":"","libsyn-post-episode-update-id3":"","libsyn-post-episode-release-date":"","libsyn-post-episode-simple-download":"","libsyn-release-date":"","libsyn-post-update-release-date":"","libsyn-is_draft":"","libsyn-new-media-media":"","libsyn-post-episode-subtitle":"","libsyn-new-media-image":"","libsyn-post-episode-keywords":"","libsyn-post-itunes":"","libsyn-post-episode-itunes-episode-number":"","libsyn-post-episode-itunes-season-number":"","libsyn-post-episode-itunes-episode-type":"","libsyn-post-episode-itunes-episode-title":"","libsyn-post-episode-itunes-episode-author":"","libsyn-destination-releases":"","libsyn-post-episode-advanced-destination-form-data":"[]","libsyn-post-episode-advanced-destination-form-data-enabled":"","libsyn-post-episode-advanced-destination-form-data-input-enabled":false,"libsyn-post-episode-premium_state":"","libsyn-episode-shortcode":"","libsyn-episode-embedurl":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7,8],"tags":[],"aioseo_notices":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.jamesdeprisco.com\/wp-json\/wp\/v2\/posts\/410"}],"collection":[{"href":"https:\/\/www.jamesdeprisco.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jamesdeprisco.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jamesdeprisco.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jamesdeprisco.com\/wp-json\/wp\/v2\/comments?post=410"}],"version-history":[{"count":1,"href":"https:\/\/www.jamesdeprisco.com\/wp-json\/wp\/v2\/posts\/410\/revisions"}],"predecessor-version":[{"id":411,"href":"https:\/\/www.jamesdeprisco.com\/wp-json\/wp\/v2\/posts\/410\/revisions\/411"}],"wp:attachment":[{"href":"https:\/\/www.jamesdeprisco.com\/wp-json\/wp\/v2\/media?parent=410"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jamesdeprisco.com\/wp-json\/wp\/v2\/categories?post=410"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jamesdeprisco.com\/wp-json\/wp\/v2\/tags?post=410"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}