Bloomberg/Liz McCormick, Garfield Clinton Reynolds and Michael Mackenzie/10-10-2022
“If one or two of these usually steadfast sources of demand were bailing, the impact, while noticeable, would likely be little cause for alarm. But for every one of them, all at once, to pull back is an undeniable source of concern, especially coming on the heels of the unprecedented volatility, deteriorating liquidity and weak auctions of recent months.”
USAGOLD note: We have consistently argued that a pivot, if it comes, will be centered around the inability to sell Treasuries in the private market, not because the Fed suddenly thinks it needs to pullback on its inflation stance. Oddly, Bloomberg mentions every possible source of future buying but the most probable – the Fed reversing course. The bottom line is that the quantitative tightening chickens are already coming home to roost.
