All-time lows in 10-year Treasury yields this morning.
Yup.
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."
https://twitter.com/KeithMcCullough/status/750258289691201536
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...