The CRB Index gapped higher today and it follows a gap higher opening on Tuesday, which has not been filled. Today’s gains lift the commodity index to a trendline drawn off the January and February highs and catches the high from late May. It intersects today near 181.35 and the high has been a little …
Great Graphic: CRB Index Hits 2017 Down Trendline Read More »
Bond yields are rising. The break-even rates, which compare conventional yields to the inflation-linked securities are also rising. These developments, which we do not think can be attributed to central bank policy, encouraged us to take another look at commodity prices. Some investors are talking about a potential head and shoulders bottom in the CRB …
China reported its first increase in producer prices in four years earlier today. As one might suspect, producer prices are often driven by commodity prices. The red line is China’s PPI and the blue line is global commodity prices. Yet the fit is not really as tight as this Great Graphic seems to show (h/t …