Treasury bond futures continued lower this week after former Federal Reserve Chairman Alan Greenspan spoke on CNBC and stated “monetary policy” has virtually run its course unless we reintroduce quantitive easing. The 30-year Treasury bond futures are currently down 25 points today currently trading at 165^03 per 100K face value at the Chicago Board of Trade.
Earlier this morning on CNBC’s “Squawk Box” IMF managing director Christine LaGarde said that negative interest-rates were creating a positive impact, but when the former Fed chairman spoke he publicly disagreed with her assessment. In case you have not heard, some European countries, Japan, and even big bankers in New York have decided to push interest-rates into “negative” territory – yes, you must pay the bank to hold your deposits.
“Monetary policy … has done everything it can unless you want to put additional QEs on. They’re not helping that much in the sense that ultimately determines whether or not you’re getting an effect from the QEs” (beyond increasing price-to-earnings ratios in the stock market),” said Alan Greenspan, former Federal Reserve Chairman for the Federal Reserve, sharing his fundamental assessment of the interest-rate futures market. Greenspan added, “There’s no real evidence that we’re getting an impact on lending and on the economy picking up.”
The trend for interest-rate futures is technically up, however stagnant & sideways. Interest-rate futures will eventually breakout one way, or another, but with the economy flat as it is, it feels more like a “calm before the storm.”
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.