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The Trillion Dollar question seems to be….“Will the financial experiment by the Fed lead to increased IN-flation or DE-flation?”
Government bond yields increased and prices fell, going into the QE3 announcement and the opposite has happened since. Did this price action fool a few investors?
Now yields find themselves on rising support and bond prices at falling resistance. Bond traders are a pretty smart group of people!!!
The next move in yields and prices should tell us a ton how this group feels, per which theme (Inflation/Deflation) they believe in more.
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