Wednesday, March 17, 2021

Egads!

 I hope it was a misprint. I have the ten year at 1.68. This is "whoa nellie". Maybe day after, a quick negotiations, and off we go? 

A wash, rinse, repeat conspiracy

Oil buyer, very large betting collection, sells the ten and holds cash just after closing. Yield up, dollar up, oil down. Oil buyer group then filled up with oil. That is a now broken petrodollar standard. It can't stop an arbitrage. Ten ear at 1.6 seemed just right, kept a stable $65 oil price and bouncy dollar.

If the primary dealers cannot keep pace with petrodollar then that impacts Treasury, Treasury forced extremely short, we get rate cycle.

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