FAST FIVE: One Bank Turn Apocalyptic: "The Fed Will Inevitably Move To YCC" As "Rates Are No Longer Anchored"

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  [Insert Bloomberg] And yet, it's very likely that next week this massive inflow won't be repeated.

In fact, it's far more likely that next week we will see a massive outflow because as Hartnett notes, “the price is now right”:  he points to the >100bps rise in 10Y TSY yields since Aug 4th low – as a reminder the plunge in 10Y prices since last March has been the 2nd worst bear market for bond in recent history…  .

has created an addictive Wall St-Fed dependency culture (everyone bullish) and beginning of Main St-Treasury dependency culture, which will spiral higher with $8tn US govt spending for stimulus checks, welfare, financed by $8tn Fed balance sheet.

and more importantly according to the rates strategist, means that rates are no longer “anchored”; Indeed, the best measure of interest rate uncertainty is 10-year Treasury term premium and it has surged by 120bps in the past 12 months.

and what to do ahead of the Fed's historic nationalization fo the entire bond market.

Categories: ZH