The yield curve shows two characteristics. First it is still flattening. Second it is rising.
The rise is worrisome but the lifting of the low rate is truly of concern. We have been presenting this for almost a year now. As the low end rises as rapidly as it does and as deficit increases as it is, then the cost of that debt, most of which is short term, explodes! The cycle becomes unstable.
The above is an example. We shall examine the FED balance sheet again as it unrolls debt, almost all worthless, and at the same time finances the excess. This could be a deadly embrace.