Feeling Lucky?

The hate for Treasuries continues unabated. It is true that they’ve been languishing recently – but when one looks at the Credit Suisse risk appetite index (below), the reason is clear. Euphoria. It is safe to lend anything to anyone, because Ben has our back. This mood will not last, IMO. And then we will see a short squeeze in Treasuries of the finest and juiciest kind.

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