As Christmas only comes once a year – so should Yellen.

I have gradually absorbed Yellen’s comments from the Federal Reserve Meeting held earlier this month.

Have checked the figures – looked at the options and watched the bond performance.

Interesting state of affairs – in Japan – yield curve is flattening – so expected nothing more from Kuroda – Yen will advance against the US Dollar in the meantime.

Amazed that the economic history is written on Japan – and no one from the US Federal Reserve look at the consequences over the past 25 years.

Yellen in her wisdom though – has indicated rates will rise this year – yes so I expect Mother Christmas to raise the interest rates by 0.25 percent in December 2016.

image

 

This was most probably a ‘political inspiration story’ from Yellen – to offset the flak received when Trump when he stated that the US Federal Reserve was politically motivated – holding interest rates near zero.

Never mind US Bonds have peaked – so the indicators point to the fact that someone believes that the Christmas rate hike is a certainty.

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Chart courtesy of Bloomberg

 

Then again – who believes in Santa Claus?

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