Despite an initial, brief sell-off in 10-year yields following this morning's positive jobs number, the bond market showed its immunity to lagging indicators and consensus expectations.
Ten-year yields are now sitting right on our 2.59% tail line of resistance (down 44 basis points year-to-date.) Keep a very close eye on that.
With the US Dollar on its knees, trading near YTD lows (-0.60%) and inflation ripping into the purchasing power of consumers (CRB Index +9.6% YTD) the bond market continues to support our #GrowthSlowing view.
We’ve been saying this for months now: Inflation is accelerating and growth is slowing.