The inflationistas have been deriding David Rosenberg’s prediction for a “two handle” on the 10 year for months and months now.
Hmmm.
The CPI and PPI prints suggest that we not only have no inflation, we have slight deflation - for the past two months (CPI) and three months (PPI).
And now, the 10 year has a two handle.
Where oh where is the inflation that the bulls were worrying about?
It’s in the universities — 30% to 40% hikes in rates after many years of 7% to 10% hikes. Of course, we all now who runs higher-ed.
What is a two handle? What is the significance?