Schiff on Metals and Miners: The Fed Can’t Fix the Yield Problem - SchiffGold.com
Schiff on Metals and Miners: The Fed Can’t Fix the Yield Problem - SchiffGold.com
Source: SchiffGold.com
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DW NOTE
The Fed raised rates 25bp two weeks ago to fight 3.4% CPI while the 10-year yield climbed 11.64% in a month to 5.18%. Schiff's point is structural: when Treasury issuance outpaces demand by this margin, the central bank can tighten all it wants — bond vigilantes set the price. The deficit is running 3% ahead of last year; someone has to finance it, and they're demanding more yield than the Fed finds tolerable.