Bonds article from Bloomberg and UBS' Briscoe

Patrick Reid

The actual headline is incorrect because the link is an interview with UBS Bond guy Briscoe. It doesn't matter because what he's saying is very important. Bonds are getting finally lifted because of lower inflation. Lower inflation is because of Oil. BUT this has not fully played out and therefore NOT reflected into the price. US Core CPI is around 2% along with headline not far above. The YOY mean is 2% (i did that calculation by dividing the total monthly prints into 12) So the current price makes sense. If Oil stays around the 40 USD mark CPI will tank. If you're a tech person (like me) just look at 10 year yields. 3.25% capped, 3% failed, 2.8% broke and the next target is 2.6% which is massive. This is called a FAILURE. Another reason why bonds look attractive.

I'll be quiet now. x

Bloomberg article