December 3, 2021
WHAT INFLATION:
An Inversion That Will Likely End the Inflation Narrative (Jeffrey Snider, December 03, 2021, Real Clear Markets)
This rekindled inversion already does indicate a very likely end to the "inflation" narrative of 2021, a welcome development in the narrow sense of consumer prices, yet this would also mean 2022 almost certainly ends up closer to 2019; as a best case.
Treasury Spreads Tank (Steven Strazza and Ian Culley, 12/01/21, All Star Charts)
Treasury yield spreads are contracting.Inflation has been the talk of the town in recent weeks. But, now that the Federal Reserve has finally joined the chorus, the market seems to be headed in a different direction. At least over the near term.Short rates are holding up just fine, but the longer end of the curve has been under serious pressure.We've been closely monitoring long-duration rates for signs of further weakness. As we write, the 30-year is violating its summer lows, and the 10-year is testing a critical level of interest around 1.40%.
Posted by Orrin Judd at December 3, 2021 12:00 AM