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I believe that the long term bond has quite a bit of room to move lower as liquidity comes into the market and creates yield compression as we move through this flattening cycle. I expect the 10 year to get to sub 1% yields, and the 30 year to fall to sub 2% yields before the end of the cycle.Economic Data Continues To WeakenThe Atlanta Federal Reserve's GDP NOW forecast has moved from a high above 5% to a low below 2%, and currently sits at around 2.8%. I believe we are going to see a continued slide in GDP as velocity continues its long move lower and the Fed continues to reduce the money supply.The Federal Reserve's mandate is full employment within a context of price stability.
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