Long-term rates
Bond prices are not falling.
The bond market is a puzzle. Either gold is right, and inflation is coming, or the bonds are right, and inflation's under control.
Money Supply
Money usually tells the tale, but in this case, the data is confusing.
While most current money numbers are under control, past money growth has built a powerful backlog of fuel for price increases.
Money velocity increases as short rates rise, due to the increased benefit of leaving cash in an interest-bearing account, and this can temporarily increase demand.
Work the short end of the curve
Money market arbitrage is the tactic of choice at this time.
Call or email Paterson Financial for advice on making profits at the short end of the yield curve.
