Thursday, May 30, 2019

Yield Curve

The following is the current yield curve.
Note the extensive inversion and flatness.

Here is the spreads:
This does not bode well. The long term rate reflects growth and it is now sinking. The short term rates reflect Government operating costs which are exploding. This is a wedge scenario and one should expect it to be reflected in the stock market soon.

This yield curve is totally untenable. Is anyone looking?