The plunge in yields continues and even unflappable stocks are starting to crack a little... 7Y Treasuriy yields just cracked below 2% for the first time since Nov 2013. What is perhaps most worrying for the exuberant equity market is the dramatic flattening in 2s30s today (2Y +2.5bps, 30Y -9bps on the week). Wondering why bonds keep rallying... see below...
Yields are tumbling across the complex (except the short-end)
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Leaving the 7Y back under 2%
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With 2s30s at one year lows...
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And this is why... Treasury shorts actually added into the rally of the last few weeks...
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Charts: Bloomberg