The Glenn Greenspan agenda is on track this morning with the dollar launching at 93 cents last night before pulling back to 92.5:
The proximate cause remains the same: Glennspan’s embrace of a higher currency and house prices and, internationally, the US bond flattening, which is now royally confirmed with an aggressive long bond bid plunging yields through support at 3.54% to 3.5%:
It took the 10 year with it, also bid strongly with yields tumbling 1.3% to 2.66%:
It’s rising channel is still intact, offering some hope but, by crikey, if it keeps being bid and we get a little more promising cyclical data in Australia then the spread to the Australian 10 year is primed to blow out and the Australian dollar is off the 95 cents:
The great tradables hollowing out has resumed, only now we’re not making room for a surge in resources investment, where making room for further inflation of the housing bubble.
