Dawn chorus: Bond vigilantes vs mass money printers
Investors worried about inflation push up wholesale interest rates, but central banks are pushing back by printing much more cash to buy bonds and create more inflation; RBA intervenes
TLDR: Keep an eye out this week for a potential Reserve Bank intervention in the bond markets to push long term bond yields back down. Australia’s central bank did just that on Friday. Our Reserve Bank is among of group of central banks now in a fight with investors over the inflation outlook and the direction of longer-term market interest rates. The m…
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