....what the bond market is suggesting is that Americans just voted for more Inflation (going forwards).
....it won't be long that equity markets would be confronting a higher for longer interest rate environment, setting up a potential clash between the Fed and the Trump administration.
This chart is concerning.
The 10-year yields seem poised for another breakout after what appeared to be over a year of consolidation in my view.
As inflation expectations continue to rise, it's worth noting that more than a third of US debt is set to mature within the next three years.
The 10 year note yield is just causally up another +13 basis points today. That's +85 basis points since the Fed started CUTTING interest rates. And, no one seems to care. Why has this become normal?
