Editor's Note: Below is a brief excerpt and chart from today's Early Look written by CEO Keith McCullough. Click here to learn more about the Early Look.
Why have US Treasury Yields on both the short and long end of the curve been rising since September 2017?
A) Oil’s Reflation (Bullish @Hedgeye TREND breakout signal in SEP)
B) Reflation Expectations bottoming in AUG 2017 then rising from SEP-DEC
C) US Growth Expectations continuing higher in the face of #accelerating cyclical and GDP data
Put simply, when both growth and reflation expectations are rising at the same time, bond yields rise. Period. That’s why timing Reflation’s Rollover II (vs. the epic one we saw from MAR-AUG of 2017) is going to be a subtle but critical risk management exercise.
