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Bond Yields Are Tumbling As 'Policy Error' Panic Resumes

Tyler Durden's Photo
by Tyler Durden
Tuesday, Nov 09, 2021 - 09:04 AM

US Treasury yields are tumbling across the curve this morning (despite a record high PPI print) with the long-end outperforming (30Y -6bps, 2Y -2.5bps)

This has pushed 30Y Yields down to their lowest since before September's FOMC statement...

Which has driven the yield curve (2s30s) to its flattest since Nov 2020...

Flashing a big red warning flag that a Fed policy error is coming.

And the long-end of the curve remains inverted for the 9th straight day...

The dollar is down as yields drop...

And gold has rallied back above $1830...

And of course, cryptos have ripped to new record highs.

Are markets getting nervous that a Fed Chair Brainard will be the doviest dove in dove-land?

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