The Fed buys $2.169B in Treasurys maturing 2028-2040, of $11.069B offered by dealers. Treasurys overall are mixed: the 30-year yield -0.01 to 4.27%; 10-year flat at 2.897%, 5-year +0.02 to 1.52%.
Investors are bailing out of high-yield and muni bond funds (down $723M and a record $3.1B this week, respectively) on "renewed concerns in the sovereign space," Merrill Lynch strategists report. Investment-grade and emerging-market bond funds, by contrast, saw inflows.
Here comes the doomsayer again ...
It's not just the U.S. where price indexes aren't reflecting real inflation, Marc Faber says - China's inflation is really more like 10% per annum. Talking to Bloomberg TV, he says "China and the U.S. are on a collision course, both economically and politically."