The yield curve steepening from August 2019 continues
It’s just another yield curve post to be considered or ignored as you please.
The steepener continues apace. The Goldilocks boom is long gone (RIP August 2019), replaced by an inflationary one. It’s a boom thus far, but this kind of boom should eventually bring on a serious liquidation if we do not pull a von Mises style Crack-Up-Boom first.
The curve waffled with the recent pullback in long-term yields but is up again today as nominal yields threaten to resume upward. The implication is ‘still inflationary’, although we are on watch for a potential bout of deflationary anxiety whipping up to at least a moderate degree at some point.
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