BaylorSpineGuy said:
10Y yield falling pretty good now. Down 3.506 today.
Falling yield…..may mean a few things. Fed about to pivot, which is not historically bullish. May signal a recession very soon. Fed funds rate now above 10Y Treasury yield.
Big money buys bonds for safety plus small interest income.
Curious to see what exactly happens here next.
Fed is not pivoting. Every Fed speaker has said no pivot but no one believes them. Barr just said a few minutes ago:
IT IS A MISTAKE TO BELIEVE THAT CHANGES IN THE PACE OF RATE HIKES INDICATE A SHIFT IN THE FED'S COMMITMENT TO A 2% INFLATION TARGET.
THE FED'S POLICY RATE WILL HAVE TO REMAIN HIGH FOR AN LONG PERIOD OF TIME.
WE AREN'T THINKING ABOUT LOOSENING.
We will be in a deep recession before a pivot.