“The core PCE is close to 2x the Fed’s target. The Fed is running off the balance sheet, they are not a buyer. And, at the same time, as we will see this week with the Treasury’s quarterly refunding announcement, we are running very, very large deficits, and that deficit picture going forward is not looking particularly good.”

Get your updates each week with Gregory Faranello, CFA–Head of U.S. Rates at AmeriVet Securities.