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Bond Selling and Dollar Buying Put Fed in Double Bind of Biblical Proportions

I have warned for the past several weeks that when the Federal Government started to claw back all the cash that it pumped into the markets while paying down debt since September to avoid going above the debt limit, that the surge of Treasury supply would send yields soaring. But the dollar is also soaring. The Fed’s in a double bind of biblical proportions. Here’s what the charts show us about what’s coming.

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