In the short-term, if bond traders and investors flee the euro and European bonds and pile into U.S. Treasuries, Treasury prices will up and yields go down despite any pick up in U.S. inflation. That would confound bond bears betting on falling prices and rising yields. So what are the odds of such a flight to the safety of U.S. Treasuries?
At its meeting today the European Central Bank decided to buy fewer bonds each month but for more months. Monthly purchases will be cut to 30 billion euros ($35 billion) from 60 billion euros beginning in January. But the bank will extend its bond purchases until September. Some observers had through the central bank would end purchases in January or March.
Notes You Need for October 6: oil and Nate, Apple iPhone 8 batteries, euro, rig count, German GDP, Amazon drug distribution, CVS, General Cable
In my daily trawling through the market I come upon lots of tidbits of knowledge that I think are important to investors but that don’t justify a full post. I’ve decided to start compiling these notes here each day in a kind of running mini blog that I’m calling Notes You Need. I launched this new feature on JubakAM.com on December 1. For example, “10:20 a.m.: Oil was up on speculation that Tropical Storm Nate would rise to the status of a hurricane and then hit the Gulf Cost, disrupting refineries and oil export platforms again But now oil is down on speculation that the storm won’t hit the Gulf Coast has hard as previous speculation suggested.”