Bill Gross, manager of the Pimco Total Return Fund, the largest pool of bond asset outside of China (I made that part up, but it’s really big) says the Fed could accelerate its Treasury purchases if yields continue to rise. Not like he has a vested interest in them doing so, or anything…
EUR/USD is dipping at the moment with dealers eyeing a cooling in the equity rally. We’ve followed the sale pattern in recent days: early stock strength followed by a pullback midday. Wednesday stocks recovered, Thursday they did not. They’ve come a very long way in two-months time, so a dip is not totally unexpected. Same can be said for most of the legs of the reflation trade. 1.3430 is intraday support on dips. Longs would like to see a close above the 200-day average at 1.3461 today.
