MP Bonds Mar 20th before Bernanke speech

Comments from Mr Ben Bernanke that caught my eye:
Trade Gap requires action from US & Partners
Consumer spending will keep the US economy growing near trend GDP
Lower housing may help US savings rate
Dow Jones reported:
Bernanke undecided beyond March - Really - Well we will just have to wait and see as this am's rally in the USD suggests otherwise BUT then they (Dow Jones) also reported Low Term Premium Would Argue For Tighter Policy
Now come on guys which way do you mean????
My personal take is that the speech was hawkish and that we can continue to have several more hikes into the summer. Current thoughts are that GDP is > 5% which is huge and above trend growth and that Unemployment is actually moving to full employment in many instances. The only problem areas are the twin deficits but for the moment there is little to suggest that these are a problem in terms of financing just yet especially if higher yiels are forthcoming not just at the FED level but via the Long Bond

Thanks for the comments. I've started to keep a casual eye on bonds and am going to try and automate some stuff to alert me when something out of the ordinary happens there to educate and update myself with the bond action.

Bonds especially the long bond is the be all end all and is THE reference benchmark. If bonds go trending then you should sit up straight and pay attention rather than taking a casual interest for its impact is far and wide

When I start thinking like that I find that I usually end up back at the same point like a circular reference in Excel. Bonds impact -> Stock which impact -> Currencies which impact -> Commodities which impact -> Bonds etc...

You can put them in any order and argue a case for any of the inter-dependencies.

I agree with you that bonds influence everything but then I also think that everything influences everything and so where do you start and where do you end?

If you area global macro investor then you start with your base currency, then consider currency exposure then interest rates then markets then asset allocation then sectors. But if all you are is a day trader then the answer stick to the market that you know and love the best and master it

Good comments!