Treasury Curve Collapses To Fresh 10-Year Lows After Data Dump

Hot CPI, disappointing retail sales, slumping surveys, and a drop in real wages... is it any wonder the yield curve just flushed another 3bps to a 75bps handle - the flattest 5s30s curve since Nov 2007.

 

This is the 13th daily flattening out of the last 15 days...

 

Everything changed after China intervened in it's FX market 'Shanghai Accord'-style...

 

There was some serious volume in Treasury futures as the data hit...

Comments

FreeNewEnergy Wed, 11/15/2017 - 09:45 Permalink

The stock market is only good for propaganda.When it starts going down - now - the message changes and the elites have planned it.A year from now, we will be told the recession started in the thrid quarter of 2017.Thanks for the warning.BTW: We're screwed no matter what happens to stocks, bonds, silver, gold, oil, or anything else.The taxes are TOO DAMN HIGH!

djrichard Wed, 11/15/2017 - 09:56 Permalink

13 week treasury is at 1.24%.  Above the threshold needed by the Fed Feserve to increase the Fed Funds rate.  But even with a 25 basis point increase, the Fed Funds rate wouldn't be enough to invert the yield curve (the 10Y yield has been rising enough to stay out of reach).  But it is getting closer to that eventuality: the 10Y yield will eventually plateau out and the 13W will catch up with it.