As the monetary stance changes, volatility picked up in the treasury market. Market depth has deteriorated for all tenors. As QT kicks in shorts will increase and liquidity will be vital 👇 pic.twitter.com/j52qxWHrZZ
— Menthor Q (@MenthorQpro) February 15, 2022
ES Liquidity back to record low levels pic.twitter.com/2KAmkZ2tk6
— zerohedge (@zerohedge) February 15, 2022
*U.S. TREASURY 30-YEAR YIELD RISES TO 2.36%, HIGHEST SINCE MAY
— lemasabachthani (@lemasabachthani) February 15, 2022
Once real yields approach equilibrium levels, subsequent S&P500 returns tend to be poor
US real yields have gone up sharply YTD, and my estimate for the US equilibrium rate r* is around 0%
If the Fed pushes the hawkish narrative further, we might see deeper cracks in the walls pic.twitter.com/0buiYEgwU5
— Alf (@MacroAlf) February 15, 2022