Borrows Have Short-Term Opportunity To Lock In Rates On Long-Term Loans

<p>The July 4 weekend kicked off what Thirty Capital CEO Rob Finlay described as a "crazy week," with a big drop in Treasury yields.</p> <p>Rob repeated what he said in the last episode that this is a time for borrowers to lock in deals before inflation increases borrowing rates.</p> <p>Thirty Capital Analyst Bryan Kern observed that the market seems to agree with the Feds—that inflation is transitory, and tapering of quantitative easing may not be in the cards for 2021.</p> <p>"On the week, we’re only really down eight basis points, but there’s definitely a trend of Treasury buying," says Brian. "We’ve got a ten-year Treasury option, so we’ll see how that goes."</p> <p>'PERFECT OPPORTUNITY' BEFORE INFLATION RISES</p> <p>Rob believes that market conditions make it difficult to identify emerging inflation. He says this is a perfect opportunity for borrowers before the cost of money becomes expensive.</p> <p>Current conditions are, says Rob, "Short-term. This is all just smoke and mirrors. "We're trading say 20 to 30 basis points below our 100-day, 50-day moving averages. It's just now we're getting very close to the 200-day.</p> <p>"I think this is short-term. This is a perfect opportunity right now before people start to realize that we do have inflation, and it's not just small stuff. You can go around and see stuff that costs more."</p> <p>THIS WEEK’S INDICES WILL IDENTIFY INFLATION</p> <p>Bryan continues: "Folks who are looking at inflation who don’t think it’s there, we’ll definitely find out this week.</p> <p>"We’ve got the Comparative Tracking Index (CTI), Producer Price Index (PPI), and retail sales due to report this week."</p> <p>In addition, all eyes will be on Federal Reserve Chairman Jerome Powell, who is scheduled to deliver the Fed’s semi-annual report to Congress on the state of the U.S. economy starting on Wednesday.</p> <p>POLICY DELAY WHILE FEDS GRAPPLE WITH DATA</p> <p>Rob thinks policy makers are kicking the can until they figure out what exactly is going on with the economy.</p> <p>"They don'