Sunday, February 1, 2009

inflation expectation emerging

1)For the first time since 2007, Treasury investors are betting that inflation will accelerate. The yield on 10-year notes exceeds the consumer price index by 2.74 percentage points, the most since December 2006. The gap between two- and 10-year rates widened at the fastest pace in a year last month as traders demanded more compensation for longer-term debt.

Gold/oil shall again bought as protection against inflation while US$ will start to weaken.Pls pay attention to these new development closely.

2)my short on GJ turns out to be good as for now. Looking at EU,i'm pretty sure we will revisit 123-125 area before any major correction higher.

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