need convincing of our U.S. #growthslowing call?
Look at the yield spread compression of the 10-year Treasury versus the 2-year Treasury yield spread. Here's analysis via Hedgeye CEO Keith McCullough in a note sent to subscribers earlier today:
"Most things macro (last week) queued off of what I think was another head-fake in rate hike risk; UST 10yr Yield +15 bps w/w was a counter TREND move to 1.90% which has since pulled all the way back to 1.82% this am, flattening the Yield Spread to yet another YTD low of +94bps wide (10s/2s), which is an explicitly bearish GDP growth signal."
Click image to enlarge
Just an FYI, this spread has compressed to levels not seen since 2007.