There is a reason why the Fed took the unprecedented step to announce it would begin buying corporate bonds this week: according to Bank of America, which is looking at the latest EPFR fund flow data, March 20 was the "bond capitulation day" when a record $34.6BN in redemption from bond funds took place.
This, together with the record outflows observed in the past two weeks which now amount to a "stunning" $218BN in bond outflows led BofA CIO Michael Hartnett to declare that the "bond bubble has popped" leading to an almost identical inflow, or $234.6BN, not into stocks but into the one asset that most certainly is not "trash": cash.
http://feedproxy.google.com/~r/zerohedge/feed/~3/35ezjXH1k_I/bond-bubble-pops-why-fed-bailed-out-bond-market
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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