1.) Investors are getting scared about inflation, pressuring the Fed to raise rates.
2.) Investors are beginning to doubt that previous easing was enough to keep us out of recession, pressuring the Fed to lower rates.
If the Fed lowers rates, Treasuries will be massacred. If the Fed raises rates, this is tantamount to admitting defeat re the recession, Securities will be massacred.
I had thought this might last a bit longer, until it was obvious that the Fed was out of ammunition, but it turns out that they are like the British regulars at Isandlwana. Bad ammo. Here comes the assegai in the chest!
