Comments on CNBC

Comments on CNBC
  • The dollar may be doomed in the long term
  • Stocks are at extremely high valuations
  • Powell is hoping and praying on inflation
  • Doesn't see a breakout in commodities
  • A lot of things remind him of the 1970s

His track record on non-bond calls is suspect. This is my takeaway from his comments:

"Yields are this low because of the liquidity in the system... banks are so desperate to do something with their excess reserves... we also have a lot of foreign buying... pensions at [fully-funded status] are locking in yields, a source of demand." he said.

Yields are back near the lows of the day, with 10s down 4 bps to 1.317%