Jeffrey Gundlach
@TruthGundlach
Bills fan. Art fan. Truth fan. DoubleLine Founder.
6 Following 572K Followers
“Trump Says Inflation Will Pay Off the $40 Trillion Debt Very Rapidly.”
So you want to “tax the rich”, do ya?
The LA “Mansion Tax” in its first 3 years has resulted in:
* a revenue DECREASE of $452 million
* 9100 new home constructions blocked (1000 of which were “affordable housing”)
* 16,650 full time construction jobs lost
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Paramount floated the largest high yield bond offering in history this week, and the bonds sold off immediately in trading afterwards. This is not a sign of a strong market.
French President Macron’s approval rating is now at 18%, the lowest in French recorded history.
Those betting against “the house” keep winning.
Hey Bills management: can you please eliminate today’s “alturnover” uniforms forever? Exactly nobody likes them. And did I hear right that there wasn’t even a Buffalo on them?
The chart of the 30 Year UST yield over the past 25 years is must viewing.
The Fed dual mandate is shifting. Used to be “low inflation and full employment”. The latter is now taken as a given in Fed comments. Dual mandate will shift to “low inflation and interest expense management”, though the two of them will always be in tension.
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The 30 Year UST yield touched 5.50% today.
The dilemma:
If the Fed hikes it will worsen the interest expense problem (since so much borrowing is at the short end).
If the Fed cuts it will worsen the inflation problem.
The Fed did the micro hike one week ago and UST long rates fell….at first.
Now they are at the high of the year and very nearly the high of the past two decades.
The 30 year UST yield is right back to where it was just before the micro hike on Wednesday.
The 2 year UST yield is now 15 bp above where it was just before the micro hike on Wednesday.
Godspeed Rick Santelli. Congratulations on a great career.
I doubt the Bills would have won today if McDermott was still the coach.
Bessent: “I am the house now. Bet against the house if you want.”
They’re betting against the house.
UST yields at new highs for the year all across the curve.
Including the 30 year.
The 2, 5 and 10 year UST yields have reached YTD highs. The 30 year UST yield has not.
Say the Feds succeed at thwarting a potentially deadly terrorist plot. I doubt a defense of “no one has been harmed, and no one claims to have been harmed” would even be attempted.
Perhaps the Fed Chair denouncing forward guidance will be remembered for giving thinly veiled forward guidance at his first major speech as Chair. Perhaps.
