Fed cut -- the day after
I don't know at what point the move becomes "disorderly" -- something currency traders and central bankers hate to see. And I still see NO evidence this is impacting the bond market. In fact, long bond futures are up another 2 25/32 as I write. Mortgage bonds are rallying as well, driving mortgage rates lower. But you just have to wonder how much longer foreign creditors will just "grin and bear it." We're not a surplus nation like Japan was when it embarked on its ZIRP policy. We're a debtor country that relies on foreign inflows to sustain itself. I just hope Ben Bernanke's good luck continues -- for all of our sakes.