Anna Wong
If you are wondering why UST 10 year is rallying to the Iran news… red line here is the Fed’s latest FRBUS impulse response to a $10 dollar increase in oil prices z Core pce inflation goes down, and 10 year should be going down, the Fed’s response should be to CUT. This is not even accounting for whether oil will spike $10 or not considering US has become net exporter of petroleum in 2019, that shale production can be turned on and off flexibly, and US now also has Venezuela, and OPEC plans to increase supply. If anything, one of Bessent’s 3 has a better chance of coming true.
