kingworldnews.com / July 26, 2017
As we near the end of July, it’s all about QT, sentiment and a bullish development for gold and silver.
It’s All About QT & Sentiment
July 26 (King World News) – Here is what Peter Boockvar noted as the world awaits the next round of monetary madness: With plenty of hints that QT from the Fed comes before another rate hike, the only question today is whether the groundwork is laid in the statement for a beginning of this process in September or do they rely on upcoming speeches to set the stage. As the September meeting is not until the 19th/20th, they do have some time but considering that Yellen only a few weeks ago at her Congressional testimony said QT would start “relatively soon”, it would be nice to have some more color today on what that timeline means. When it does begin, what will long end yields do? On paper the obvious answer is higher but yields fell after QE1 and QE2 was underway and sunk when they were done. Yields rose after QE3 started but really spiked when Bernanke hinted at tapering in May 2013. I continue to believe that long end yields will remain in this tug of war between modest economic growth and below 2% inflation on one hand and QT and likely ECB tapering on the other hand which could be a drag on yields to the upside…
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