CHART OF THE DAY: US Durable Goods

10/28/21 08:13AM EDT

Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough. 

On while the short-end of the curve moves on Fed Rate Hike Expectations (yes, during #Quad2 the market RAISES rates for the Fed, not the other way around), the long-end moves on perceptions of economic GROWTH and INFLATION:

A) Oil down, hard, in conjunction with Commodities correcting from the day prior’s Inflation Cycle High mattered…
B) Durable Goods #slowed in SEP to +15.3% year-over-year growth from +17.6% in AUG = #Quad3 in Q3

Let’s set aside that both Durable Goods and US Capex #accelerated on a 2-year TREND basis (that’s why the 10yr Yield can start going back up again from here towards 1.72%, and the curve should steepen again, short-term)…

CHART OF THE DAY: US Durable Goods - dg1

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