The Market: Zooming Out
Rates have changed the game. Playing for bounces from the long side here is as misguided as playing for pullbacks in June and July.
On June 17, 2022 FRB Minneapolis President Neel Kashkari rolled out 200 bps TIPS 10s as the necessary level of restraint the Fed needed to engineer to bring inflation back to 2% on a sustainable basis. This morning TIPS 10s hit 199 - close enough, especially for Biden government work - but more importantly, TIPS 30s breached the 200 mark with ease, hitting 211.