It would appear the housing data was not the growth-inspiring 'everything is awesome' facts that we were told about last night. US Treasury 30Y yields have just broken to a new record low 2.3500% handle... The yield curve (2s30s) has cracked lower to its flattest since 2008. As we explained here, this is not unexpected as anticipation of ECB QE means duration scarcity rules [5].
30Y Treasury yields hit record low...
[6]
Which leaves the yield curve at its flattest since 2008...
[7]
Larry Fink proclaimed this morning that record low yields are not a reflection of weak economic growth but show debt issuance is not keeping pace with bond demand...of course what he misses is the reason that debt issuance is not keeping pace is because trade is so low that it's not generating big enough deficits to create the debt.
Charts: Bloomberg
