• 1 hour India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 6 hours Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 10 hours Russia, Saudis Team Up To Boost Fracking Tech
  • 16 hours Conflicting News Spurs Doubt On Aramco IPO
  • 17 hours Exxon Starts Production At New Refinery In Texas
  • 19 hours Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 2 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 2 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 2 days China To Take 5% Of Rosneft’s Output In New Deal
  • 2 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 2 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 2 days VW Fails To Secure Critical Commodity For EVs
  • 2 days Enbridge Pipeline Expansion Finally Approved
  • 2 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 2 days OPEC Oil Deal Compliance Falls To 86%
  • 2 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 3 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 3 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 3 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 3 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 3 days Aramco Says No Plans To Shelve IPO
  • 5 days Trump Passes Iran Nuclear Deal Back to Congress
  • 5 days Texas Shutters More Coal-Fired Plants
  • 6 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 6 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 6 days Chevron Quits Australian Deepwater Oil Exploration
  • 6 days Europe Braces For End Of Iran Nuclear Deal
  • 6 days Renewable Energy Startup Powering Native American Protest Camp
  • 6 days Husky Energy Set To Restart Pipeline
  • 6 days Russia, Morocco Sign String Of Energy And Military Deals
  • 7 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 7 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 7 days India Needs Help To Boost Oil Production
  • 7 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 7 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 7 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 7 days District Judge Rules Dakota Access Can Continue Operating
  • 8 days Surprise Oil Inventory Build Shocks Markets
  • 8 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 8 days Syria’s Kurds Aim To Control Oil-Rich Areas
Alt Text

Could Low Oil Prices Cause A Global Recession?

The global economy is slipping…

Alt Text

5 Picks For A Booming Tech Market

Technological breakthroughs like artificial intelligence…

Alt Text

The Safest Way To Bet On The Bitcoin Boom

Often described as the backbone…

The Inflation Boogeyman is Back

Japan pulled out the firepower this week in terms of qualitative easing. Speculation is running the Fed will announce same at the beginning of November.

And so people are worried. That all this money creation means things are going to start getting expensive, really quickly.

Here's how frightened they are.

In the past week, yields on U.S. inflation-protected Treasury securities have fallen off a cliff. Meaning investors are piling into these investments for protection against global money printing.

So much so, the yield on the seven-year inflation protected security has fallen to a near-ridiculous 0.04% this week.

US Treasury Yield Rates

This is astounding. Investors locking up their money for 7 years are rewarded with less yield than on a typical savings account.

Of course, this is a bet on the future. Investors believe inflation will pick up, raising interest rates on the inflation-protected securities and ultimately increasingly yield.

But it's incredible the sacrifice such buyers are willing to make in terms of short-term yield in order to "buy insurance" against inflation. For comparison, yields on regular (non-inflation protected) Treasury bonds are running 1.75%!

This has played out across the inflation-protected curve. Yields on the 10-year inflation-protected security have fallen from 1.3% to 0.5% over the last three months.
The 30-year has dropped from 1.9% to 1.4%.

The inflation boogeyman is back. And scarier than ever apparently.

By. Dave Forest of Notela Resources




Back to homepage


Comments currently closed.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News