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