Update on the 30 year bond

Reference this post from April 14 (and its leaden, lecturing tone).  That is when this chart was first created (showing the bond had not yet broken down and thus, inflation fears had not yet broken out) amid inflationary hysterics and one 'bad cop' or another popping up just about daily in admonishment of inflationary policies.  Now that the bond has behaved and there is some decently poor economic news to chew on, they have shelved Plosser, Bullard, Fisher and are prep'ing the good cop soothsayers to do their thing. 

A couple of them have already gained the podium and tried out the mic a couple times.  Europe is in full action mode.  We will either see this rebound in stocks and commodities become real - and see a negation of the breakdown in the yield per the previous post - or much more likely in my opinion we will see the stock market drop and further coax Gentle Ben and the good cops out of hiding and into full soothsayer mode, with an eventual opening of the door to QE3.

The system is run by robots programmed to manage increasingly unmanageable events. Ain't it grand?

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