As I always teach my students, a 10 basis point increase (or decrease) in the 10-year Treasury is significant. Like today’s reaction to the hot, hot, hot inflation report. Remember, the most recent Atlanta Fed GDPNow for Q2 has plunged to 0.9%.
At 11:26am EST, the US Treasury 10-year yield rose 10.1 basis points to 3.142%. But much of Europe is rising over 10 bps today as well.
Stocks? The NASDAQ index is down -3.30% on Fed tightening signals. The FTSE MIB (Italy) is down almost 5%.
Commodities? WTI Crude oil is down -2% today. At least GOLD and SILVER are up today. Falling oil prices and rising precious metal prices are a warning sign for global slowdown.
Let’s just hope that The Fed doesn’t overreact to inflation like they did with Covid stimulypto.
