by Bill Holter, Miles Franklin:
Quietly the 10 year bond yield has risen to and above 2.8%. This is significant and something that very few are talking about. Those in the mainstream that do mention it are pointing to the “strength” in the economy as the reason. This is pure hogwash. Interest rates are rising for one reason and one reason alone, foreigners are selling treasury bonds.
As you know, the Fed is and has been the “buyer of last resort.” They now own 1/3rd of the Treasury market and have purchased over 70% of all issuance for over a year now. In effect, the Fed “IS the Treasury market.” A 2.8% 10 yr. rate is almost a perfect double from where they were just 17 months ago. Another more startling way of saying this is that interest rates have moved up 100% during a flat economy and yet the sheeple sleep.
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