| | |
|
Financial Times/Colby Smith and Tommy Stubbington/5-13-2020
“When the Federal Reserve stepped in to support the world’s largest debt market in March, fixed income investors were relieved. But in successfully staving off a more pronounced financial crisis, the Fed has further distorted markets, they say, overwhelming the once-reliable signals that bonds used to give about the path of the economy and inflation.”
USAGOLD note: This article is as important for what it portends as for what it reveals. What might be the consequences to market players when the central bank radically distorts the signals delivered via the free market asset pricing mechanism? Welcome to the bond market maze.
| |
Read the rest of the article at
USA Gold
