Your daily Yield Curve steepener view…

Just keeping tabs on the most important indicator out there (IMO of course).

With reference to the previous post on sentiment, maybe it is not such a wonder that long-term bonds (TLT) are over bearish and shorter-term bonds (SHY, IEI) are over bullish. The liquidity bid has been flying down the curve to short-term bonds in the 1 to 5 year range, which is exactly why I’ve held SHY (1-3 year Treasury notes) as a cash equivalent to this point.

But that is a digression. The curve is moving to steepen and if/as it continues (as I expected for 2020 even before the Corona effing virus) it needs to be interpreted for deflationary and/or inflationary implication. Source: CNBC

yield curveyield curve

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