The current move projection on the 10 year Treasury yield is 1.70. Longer projections point higher. I update that regularly in LT.
Let’s look at how much leveraged bondholders have lost since last August. We can use the TLT- the 20 year Treasury ETF as a proxy.
By my calculation, they’re approaching a loss of 20%. Remember that dealers buy this shit with 90% leverage. At least. And if you go back a little more in time, they bought a ton of it.
The Fed is waiting on the ground, pretending to be confident that all is well, with excitement that the economy is recovering!
Infinite QE Is Coming Despite Skyrocketing Economic Growth by Lee Adler – LIQUIDITY TRADER
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