The Phaserl


Here Is The Chart That Explains Why Rates Are Rising In The US

from Zero Hedge:

The easy answer is – well, its those dumb money ‘safe’ investors finally rotating from bonds to stocks; but what about fund flows provides any evidence for that reality. Alternatively, we suggest, the recent (and somewhat market-unexpected) pop in macro data (surprising to the upside) has seemingly provided a Goldilocks for equities (growth is rising and even if it drops back, Bernanke’s got our back) and the inverse for Treasuries (growth is rising and if that’s the case then Bernanke’s Bond Buying extravaganza is over – mark ’em down). What is stunning to us is the incredibly tight correlation since LTRO2 between macro data (trend and beats/misses) and 10Y Treasury yields. While correlation is not causation, discussion of the macro thesis is strong top-down and suggests more than one person believes this correlation. Our concern – what  dominant data is this macro strength based on – NFP/Claims beat? Retail Sales beat? (consider the controversy of the seasonal adjustments in both and what that would do to the macro data index.)

Read More @ Zero Hedge

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