Monday morning, and yields are falling again across the US Treasury curve, with the moves getting larger at longer maturities. Looks like a bull flattening from where I sit. Could the long bond have a date with the 30 yr German Bund in the low 3s?
Not much response so far in the equity markets. Some of the big techs are rebounding from a nasty spill last week, but you have to wonder how long that will last.
Just a gut feeling for now, but this smells like trouble. Or, to quote the venerable Mr. Horse:
hmmm…no sir, I don’t like it.
[correction – I originally referred to the move as a bear flattening – it’s a bull of course! mea culpa]