Become Pretty Clear
On April 19th I posted “Stealth Yield Curve Control”, suggesting the FED had been conducting clandestine money market operations to cap and bring down rates after their runup to 2+%. It is pretty clear that was true then and is even more true today. The FED is trying to stretch out the fact that inflation and rates are headed significantly higher, for as long as possible. The last two govt. jobs reports were both sandbagged to make them look weaker than they were. Even accounting for the differences in the way the govt. measures vs. ADP, both govt. reports lowballed what ADP was telegraphing. The good news for us gold and silver investors is that the charts for US govt bonds and notes are still bullish for at least a couple more weeks with a good size increase in price(and fall in rates). I don’t know what the timeline will be(possibly Aug. Jackson Hole meeting) for the FED to have to actually start talking about tapering because inflation is screaming, but it is likely to be just that, talk. Typical FED jawboning nonsense, with nothing of substance behind it. The chart of TLT which I use to watch govt. yields has a likely target in the 146-148 area which by the time it gets there, will be bumping up against overhead resistance and the 200 day mvg. avg.