Overnight saw big demand for Treasuries with futures heavily bid during the European session as the ECB backtracked on its QE promise. That strength continues this morning as the long-end of the Treasury complex rips lower in yield – despite higher than expected inflation – as traders react reflexively to the implication that higher inflation implies less room for an un-tapering Fed and thus now implies no savior for slowing real growth. As the following chart suggests – something is amiss with cross-market expectations…
Charts: Bloomberg
via Zero Hedge http://ift.tt/1v4kHdB Tyler Durden