Trouble With The (Yield) Curve! 10Y-2Y Slope Approaching Inversion As Fed Plans Rate Hikes And Bitcoin Falls

Sharing is Caring!

by confoundedinterest17

The US Treasury yield curve (10Y-2Y) is rapidly approaching inversion at 20.5 bps (where the 10-year yield is lower than the 2-year yield). But the 10Y-3M curve is generally steepening at 173.33 bps.

Of course, the driving force behind the flattening of the 10Y-2Y curve is the rapidly rising 2-year Treasury yield (orange line). The last time the 10Y-2Y curve inverted was in 2019, prior to the COVID outbreak in early 2020.

The Wu Xia United States Federal Reserve Funds Shadow Rate has finally climbed back into positive territory.

At last look, The Federal Reserve is forecast to raise their target rate 7 times over the coming year. And with the increasing forecast of rate hikes, we are seeing the cryptocurrency Bitcoin fall from near $70,000 to $41,817.

See also  The credit market is cracking - the CCC yield spread is increasing rapidly... and the Fed is only just tightening!! They won't until demand destruction occurs

President Biden announced that he will be issuing an executive order to combat rising energy prices (the rising energy prices that he caused in the first place with … executive orders). Let’s see what happens next.

Hello t-r-o-u-b-l-e.

Help Support Independent Media, Please Donate or Subscribe:
Trending:
See also  More Food Doom- Heat wave scorches India's wheat crop, snags export plans

Views: 7

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.