Former Fed Chairman Alan Greenspan in a Bloomberg TV interview, speaking of a bubble in the bond market. “By any measure, real long term interest rates are much too low and therefore unsustainable. When they move higher they are likely to move reasonably fast. We are experiencing a bubble not in stock prices but in bond price”. He went on to talk of how the economy was about to enter a period of rising inflation, essentially then bursting the bubble. Rising inflation would be a challenge for bond investors and for yield-sensitive stocks, but a challenge the Fed would relish, a more familiar historical challenge than current circumstances. Despite Greenspan’s comments the ‘’Bond bubble” get bigger, US 10s down 4.3bps to 2.25% on the back of still subdued US inflation revealed by the latest PCE deflators, a pull-back in oil prices, and for once a steadier US Dollar. The Bloomberg spot BBDXY index has risen 0.22%.

To mark my 1400th issue of Tradernoble Daily Commentary I am offering a special 2 year rate if Euro 2750 for my Platinum Service which includes 1 to 4 updated emails throughout the trading day. This offer is open to both new and existing members and if anyone is interested can you please contact me on bryan@tradernoble.com for details.

For anyone following my Platinum Service it made 23 points yesterday on the first trading day of August, having made 1096 points in July, 1023 points in June, 1071 in May, 1376 in April, 1335 in March, 1481 in February and 1734 in January. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1700 points.

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