The US Treasury yield curve (10Y-2Y) is quickly approaching inversion at 20.5 bps (the place the 10-year yield is decrease than the 2-year yield). However the 10Y-3M curve is usually steepening at 173.33 bps.
In fact, the driving power behind the flattening of the 10Y-2Y curve is the quickly rising 2-year Treasury yield (orange line). The final time the 10Y-2Y curve inverted was in 2019, previous to the COVID outbreak in early 2020.
The Wu Xia United States Federal Reserve Funds Shadow Fee has lastly climbed again into constructive territory.
Finally look, The Federal Reserve is forecast to lift their goal charge 7 instances over the approaching 12 months. And with the rising forecast of charge hikes, we’re seeing the cryptocurrency Bitcoin fall from close to $70,000 to $41,817.
President Biden introduced that he can be issuing an govt order to fight rising vitality costs (the rising vitality costs that he triggered within the first place with … govt orders). Let’s see what occurs subsequent.