Friday, February 26, 2021

Die Bund Vigilanten

American Bond Vigilantes are travelling across the ocean.  The following chart shows the relative performance of US 10 year Treasurys and German Bunds: in lockstep since last November.  The ECB's Christine Lagarde is trying to talk the yields down but, just like the Fed's Mr. Powell, it's a losing battle. Better put your monetary policy where your mouth is, aka it's not what you say that matters, it's what you do.



  1. I find it hilarious how the market was desperate for Covid relief money and rallied or not each time it became likely/unlikely. And now that they get it, they panic about the inflation it might generate Lol.

    1. Every new job loser became a bigger spender last year, but what awaits us this year?