All-time lows in 10-year Treasury yields this morning.
Yet more vindication of our Macro team's global #GrowthSlowing call.
Here's brief analysis from Hedgeye CEO Keith McCullough in a note sent to subscribers earlier this morning:
"While “stocks” have these 1-week ramps, you have to take on a lot of volatility to time those returns – with the Long Bond and it’s proxies, both absolute and volatility adjusted returns have been awesome. All-time low this am for the US 10yr of 1.38% ahead of the Friday jobs report and the Q2 Earnings Recession season."
Macro tourists and the mainstream media missed an important callout in reporting fresh lows for sovereign bond yields this morning...
The 10s/2s Treasury yield spread (a rate of change proxy for US growth and bank earnings) hit a new low for #TheCycle of 80bps today:
That's why our favorite macro call, long the Long Bond (TLT), continues to outperform:
In short, the bond market has figured out what still puzzles most stock-centric investors...