Post by
VbayNo2 on Nov 05, 2022 4:12am
Bond Market ….inflation projections & Gold
Low liquidity amplifies the volatility of asset prices and may ultimately impair market functioning.” The MOVE Index, which measures bond mkt volatility, was above 150 in mid-Oct but has backed off recently to the 130's. Per Harley Bassman, inventor of the MOVE, readings of 150 (or above) indicate the Fed has lost control and the underlying "plumbing" of the bond mkt has severe indigestion and there is risk of a bond mkt freeze-up. If this happens (freeze-up) the Fed would have to significantly adjust (or abort) its program (rate and QT) to tame inflation. NOT good!! Game, set, match - inflation wins.