"Unfortunately, the bond market isn’t buying into the hope that GDP is +2.5% here in Q2 (we’re still below 1%) – at 1.86% this am the 10yr Yield is signaling at 1.68% is still very much in play ahead of next week’s #EmploymentSlowing report," Hedgeye CEO Keith McCullough wrote in a note sent to subscribers earlier today.
Take a look at the 10-year Treasury since the Fed's December "rate hike."
The flattening of the 10s/2s yield spread to a year-to-date low is another explicitly bearish U.S. growth signal.
That's why we remain THE BULLS on Long Bonds (TLT).