Bond Yields Are Tumbling As ‘Policy Error’ Panic Resumes

Bond Yields Are Tumbling As ‘Policy Error’ Panic Resumes

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?

Tyler Durden
Tue, 11/09/2021 – 09:04

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