- Fed's dithering has meant solid gains for the 30-yr T-bill
- Yellen and her colleagues face a credibility questionmark
- Best advice is never to heed central bankers
- Central banks invariably do to little, too late
You may talk away but we've got our headsets turned off. Pic: Federal Reserve
By Steen Jakobsen
The hawkish tilt that the Federal Reserve took at its April policy-setting meeting has had one major beneficiary – the US 30-year Treasury (charts below).
Fading the Fed is the biggest money winner this year – again – and questions are increasingly being raised about the credibility of central bank chief Janet Yellen and her colleagues.
For the rest of us, the rule of thumb for central banks is this: Don’t listen to what they say, but observe what the do…(which almost always is nothing, too little or too late).
US 30-year government bond:
Some more charts worth noting:
The bank sector is under attack again...
Euro downside is increasing due to Brexit…
Europe growth leading indicator is point to SIGNIFICANT slow-down – Ie: Brexit vote yes or no is already having a negative impact….
– Edited by Clare MacCarthy
Steen Jakobsen is chief economist and CIO at Saxo Bank