The 10-2yr Yield Curve has un-inverted
In a move that is getting all too little airplay in the financial media, the 10-2 yield curve has ticked positive and is currently un-inverted. The media are probably asleep at the switch because to them, the danger was the inversion. They’ll probably celebrate the de-inversion with promos of Goldilocks, soft landings and other fairy tales for the public. Especially in an election season.
But eventually, a rising yield curve is going to bring about the “bust” side of the boom/bust equation. As I said all through he media’s negativity campaign about the inversion, it’s the subsequent steepening and de-inversion that tend to eventually wreck the economy, not the inversion. Right now it but a disinflationary steepener. When it morphs to deflationary and inflationary in its coming phases, we will then see how durable those fairy stories are.
For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed market updates and NFTRH+ dynamic updates and chart/trade setup ideas. Subscribe by Credit Card or PayPal using a link on the right sidebar (if using a mobile device you may need to scroll down) or see all options and more info. Keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar. Follow via Twitter@NFTRHgt.
