Atlanta’s Lockhart says he’s unsure whether to support further buying of Treasuries by the Fed. He’s concerned that housing demand will be hurt by rising rates. One factor will be sentiment on debt monetization, something he opposes.
Given how well buying Treasuries worked in holding down rates (not at all), we’d suggest steering clear, dude.
EUR/USD is consolidating gains at 1.4140. UAD stalled about 25-30 pips shy of the highs for the year while cable is at 1.6585.
