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Bond Market Junks ‘New Paradigm’ Talk, Frets About Too-Tight Fed

The current mood in the bond market:
bond investors are abandoning thoughts of a post-pandemic paradigm shift toward faster growth, and downplaying fears of runaway inflation

the bond market’s focus has shifted toward a slowdown in growth next year and beyond, as massive budgetary and monetary stimulus gets scaled back.

without another fiscal package, growth could dip to a 1.5% to 2% annual pace in the second half of next year, stemming the fall in unemployment and possibly even pushing it higher.

“The influences that were at work on supply and demand in the first half of the year are going to fade and the longer-term problems are going to re-assert themselves,”
Too-Tight Fed


  • And, IMHO............Covid and a complacent*** sector of the U.S. population that may put a "boot" to what could be more normal growth.

    *** “a feeling of quiet pleasure or security, often while unaware of some potential danger, defect, or the like; self-satisfaction or smug satisfaction with an existing situation, condition, etc.”

    Death or severe impairment to someone's friends or family appear to be the ultimate learning tool going forward for the complacent ones. If this is what is necessary, than so be it. Let "them" learn the hard way.

    These folks continue to impair me and mine the ability to resume a more normal life again.

    Investment grade bonds react to a variety of social, political and technical market circumstances.

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