Risk in Treasury Bonds Takes Backseat to Demand

The tape is mostly bullish for stocks right now: the S&P 500 breakout above 1130 appears to have been successfully retested last week.  On the other hand, buying activity is far from enthusiastic.  Relatively low volume suggests major players lack commitment.  Nonetheless, all pullbacks have been rather shallow, and the path of least resistance is up.  The next level to watch is 1150. Market reaction to last week’s Federal Reserve announcement has evolved, and analysis is clearer this week with the benefit of hindsight.  For those who may not have noticed, the Fed decided that what we need is more inflation.  Not surprisingly, inflation-protected bonds gained strength, gold hit another all-time high, and the dollar weakened.  These are exactly what… . . . → Full Story: Risk in Treasury Bonds Takes Backseat to Demand