June 24, 2020
After holding within a very tight range for a little over two months, the 30-yr U.S. Treasury finally broke out this week.
2020 has been the year of records— record volatility, record issuance, record inflows, and record outflows, to name a few.
The stock market has soared since mid-March. It's almost as if investors have forgotten that Covid-19 will continue to cripple the global economy and corporate earnings for the foreseeable future.
This is a much bigger leap than the previous announcements in terms of support for the economy, jobs, and corporations (good), but also goes beyond the central banker’s maxim of "lend freely, at a penalty rate, against good collateral” as the lender of last resort...