Gold News

Long Bond's Fellow Travellers Drop Out

30-year yields still rising. But commodities...?

COMMODITIES and inflation expectations have (or had) been rising right along with the long bond's yield, writes Gary Tanashian in his Notes from the Rabbit Hole.

But some of the 30-year Treasury yield's fellow travellers are dropping off, just as the hawking Fed wants (needs).

The CRB commodity price index is still on trend. Oil has a chance to crack here. Industrial metals (headlined by Doctor Copper) have long since broken down, and the Ags are creeping a rally up the underside of a previous breakdown.

Notably, inflation expectations have not cracked trend and the hawking Fed hawks on.

Simple, eh?

All in all it's a beautiful picture of a macro in process as the Continuum's fellows start dropping one by one. NFTRH has given its subscribers an objective for upside in the 30-year yield. When it reverses the fun begins, because boat loads of casino patrons are looking backwards just like the hawking Fed.

Gary Tanashian successfully owned and operated a progressive medical component manufacturing company for 21 years, through various economic cycles. This experience gave Gary an understanding of and appreciation for global macroeconomics as it relates to individual markets and sectors. Along the way, Gary developed an almost geek-like interest in technical analysis (TA), to add to a long-time interest in human psychology. Various unique macro market ratio indicators were also added to the mix, with the result being a financial market newsletter, Notes From the Rabbit Hole (NFTRH) that combines these attributes.

See the full archive of Gary Tanashian.

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