Posted on 04/06/2022 6:53:10 AM PDT by Browns Ultra Fan
Alarm!
The 10-year Treasury term premium, the amount by which the yield on a long-term bond is greater than the yield on shorter-term bonds, remains steeply negative (white line) as The Federal Reserve steps up its attack (aka, monetary tightening). Meanwhile, the 10Y-2Y curve actually rose into positive territory.
Historically, the 10-year Treasury Term Premium declines before a recession.
Meanwhile, 3 month Treasury bill to Overnight Indexed Swaps spread is crashing to the lowest level since 2017.
But with inflation raging at the fastest pace in 40 years, the REAL 10-year Treasury yield remains negative at -5.236% while the REAL 30-year mortgage rate is -3.01%. Both were in positive territory when Biden was installed as President.
Speaking of interest rates, the infamous PIGS (Portugal, Italy, Greece, Spain) are all seeing surges in their 10-year sovereign yields. Sweden, while not a PIG has the largest spike today at 13.8 BPS.
Actually, the biggest spike in sovereign yields occurred in Ukraine where their 2-year yield popped +205.8 BPS. But Lebanon has the highest 2-year yield at 162.29%. Turkey is in third place in the sovereign demolition derby at 23.52%. Sadly, Poland’s 2-year yield is up 16 bps today.
But the winner of the sovereign debt demolition derby is …. drumroll … VENEZUELA! At 436.77%.
I am really surprised that Biden hasn’t adopted Maduro’s fashion sense.
(Excerpt) Read more at confoundedinterest.net ...
Alarm over what? I don’t see folks crowding the church buildings on the weekends seeking the Lord. Not enough alarm yet. If people do not turn back to God, we’re gonna find out what ALARM really is.
LOL, yes, let’s reminisce about Jimmy Carter and his misery index. Back to the disco era.................
Is the author arguing that we don’t have an inflation problem? He seems to be saying that rising mortgage rates are not the correct solution to an overheated housing market. I guess he’s just stupid.
That occurred after 911 for about a month and then fizzed out.
Well, not everyone went to church after 9/11.
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Oh god, every time I see that face I now think chimp.
Lol
“Oh god, every time I see that face I now think chimp.”
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Ditto.🤷♂️😂
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