The Repo market is proof that something is wrong with the system. It's an unsustainable system. Rates need to stay low and money needs to be printed in order to sustain this bubble - eventually this will create an intolerable amount of inflation.
As the market realizes that QE isn't temporary, that it is permanent until inflation is out of control, then inflation expectations will shift as people move into hard assets. While everyone's still talking about overpriced SPX and NDX, I'm bargain hunting in the metals market
Platinum is insanely cheap and looks poised for a surge. Platinum follows gold. Gold is broken out and headed towards $1700
Look at the dollar index, it's telling you everthing....101.74 high today will be exceeded to new all time highs. The recent break down to 94.65 was a head fake, the dollar will be the benefactor of a crash in bonds. Time to think out of the Inflation box.
SamSzulc
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Investors demand a greater yield on cash, cash is king, there's no asset that's safe, the markets are screaming DEFLATION! Are you listening?
AristotelCostel
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Yep, a lot of inflation expectations.
Debt bubble=>inflation expectations
Nowadays nobody talks about debt, life is more important, everyone is herding under the bed.
Is it that a classical fake breakthrough? By the book?