God bless the legacy financial media because their uselessness is a blessing.
Headline to headline is no way to live through live whether you trade oil or bitcoin. The click du jour is how the 2s/5s yield curve is now inverting, and the 10s/2s are at a mere 11 bps.
I have been one of the largest flat curve-ers out there. Why? Because my process shows why the decelerating in rate in change in both growth and inflation will sink the back-end and the front steepening eases.
On Sept. 6, I wrote in "Cognitive Dissonance: What the Yield Curve Is Saying:"
"A lot of headlines have fluttered across the wires on the 10s/2s yield curve on a continuous path to inversion. Neckties on legacy media continue to say a flat or inverted curve doesn't mean much.
I reckon, given the directional trajectory of both the curve and MVR inflation matrix that the curve is signaling market's expectations on inflation.
Generally, this would make sense given that the steepening from a curve inversion is triggered by the fed's policy stance on interest rates during the end of the cycle."
The concerns about increasing U.S. supply in paper is valid, but the concerns of too much debt issuance over demand becomes "where do I put my money" concerns.
That's likely treasuries, increasingly so as investment and junk credit continue to breakdown.
10s/2s curve falls, on a rate of change basis, the fastest since 2009.