Metals

Bond Market PANIC Causes Bond Price Implosion. Gold Soars. Bitcoin up 22.6% on Week.

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from Clive Thompson:

Bond Market PANIC Causes Bond Price Implosion. Gold Soars. Bitcoin up 22.6% on Week.

Is the Treasury drawing a line in the sand and saying 5.3% on the 30 year bond is too much? That’s how the market is interpreting it. And if that is where the line is drawn, the Treasury will not be able to do it on its own. It will need the Federal Reserve to step in and buy those long-dated bonds that investors want to sell. To do that, the Federal Reserve would have to print money, effectively re-engaging in quantitative easing, which is super bullish for the gold price. To be clear, there is no current statement by anyone that we will return to quantitative easing. It is just a possibility, but the probability of that possibility happening has just gone up.

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