REFLATION IS ALL THE RAGE (AGAIN)
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Submitted by The Capital Spectator
It’s too soon to say if the bond market will stay on board with the Fed’s new world order. From 10 miles up, however, all looks fine, as our chart below suggests. Rates and spreads have both dropped considerably, delivering an upward sloping yield curve along the way. Mr. Bernanke’s big adventure, in short, appears to be on track.
