Treasury Yields Just Puked
The long-end of the yield curve just plunged with 10Y yields dropping back below 1.30%…
And 30Y yields pushing down toward 1.90%…
Stocks also dropped around the same time…
An immediate catalyst for the move is unclear although Chicago Fed President Evans did comment on his disappointment that inflation expectations were not higher (“inflation upside risk is not as strong as I’d like it”) and “more persistent inflation wouldn’t be bad.”
Perhaps that dovish signal was enough to confirm Fed liquidity is here to stay and will dominate any underlying inflation fears.
Thu, 07/15/2021 – 13:28