THE WOLF STREET REPORT: Bond Massacre, Inflation Prick Biggest Bond Bubble in History by Wolf Richter • Mar 27, 2022 • 224 Comments The dollar’s role as dominant global reserve currency is at risk if the Fed fails to crack down on inflation.
The Treasury Bond Massacre and the Spike to 5% Mortgage Rates: This is All Going Very Fast by Wolf Richter • Mar 26, 2022 • 285 Comments Junk bonds are still in la-la-land though, Apocalypse but not now.
Mortgage Rates Are Rising Much Faster than Treasury Yields. What’s the Deal? by Wolf Richter • Mar 24, 2022 • 231 Comments Is the spread heading to what happened in the 1970s and 1980s when the Fed battled blow-out inflation?
Mayhem in the Treasury Market as Powell Adds 50-Basis-Point Rate Hikes (Plural) to Menu, QT “As Soon As” May by Wolf Richter • Mar 21, 2022 • 289 Comments 10-Year yield hits 2.31%, 30-year fixed mortgage rate hits 4.66%. And why the funny kangaroo-shaped yield curve says nothing about the economy.
Why This is the Most Reckless Fed Ever, and What I Think the Fed Should Do to Reverse and Mitigate the Effects of its Policy Errors by Wolf Richter • Mar 12, 2022 • 363 Comments The Fed’s credibility shifted from Inflation Fighter under Volcker to Wealth Disparity Creator and Inflation Arsonist under Powell. And everyone knows it.
Margin Debt Plunged as Stocks Tumbled and High-Fliers Got Crushed. But Leverage Still Gigantic, Long Way to Go by Wolf Richter • Feb 18, 2022 • 176 Comments Biggest dollar-plunge ever and one of the biggest percentage-plunges.
Now on the Fed’s Table: Sell Bonds Outright to Push Up Long-Term Yields, Steepen the Yield Curve, and Get Rid of MBS by Wolf Richter • Feb 14, 2022 • 249 Comments “It could be a bumpy time”: Kansas City Fed President.
Mortgage Rates Hit 4.02%. Two-Year Yield Spikes by Most since 2009. Ten-Year Yield Goes over 2%. All Heck Breaks Loose by Wolf Richter • Feb 10, 2022 • 240 Comments Yields and rate-hike expectations spike. A rate hike now?
It Only Took $11 Trillion in Free Money plus Forbearance & Eviction Bans to Perform this Miracle on Delinquencies, Foreclosures, Third-Party Collections, and Bankruptcies by Wolf Richter • Feb 9, 2022 • 234 Comments One more reason why the Fed isn’t “trapped.” And the banks came out ahead.
Can the US Government Afford Higher Interest Rates? You Bet. $67 Trillion “Fixed Income” Assets Will Generate Higher Incomes & Tax Revenues, Boost Secondary Effects by Wolf Richter • Feb 6, 2022 • 328 Comments Bring them on. Financial Repression has a huge cost.
