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CHART OF THE DAY: The Ultimate #GrowthSlowing Indicator? - 11.30.15 EL chart

Editor's Note: Below is a brief excerpt and chart from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to subscribe.

 

"... It certainly shouldn’t surprise anyone who is paying attention to both the #GrowthSlowing and credit cycle signals of the bond market. The long-end of the curve is compressing into said “hike” expectations.

 

Here’s how that looks this morning, in bond market terms:

 

  1. Short-term (2yr) Yields spike to 0.95%
  2. Long-term (10yr) Yields don’t budge at 2.23%
  3. Yield Spread (10yr minus 2yr) compresses to +128 basis points, -23 basis points (at the lows) YTD"