Here's Hedgeye CEO Keith McCullough on The Macro Show on May 22nd, 2019.
"The UK 10-year yield today is getting smoked. It's down to 1.04%.
...So when people say to me, 'Nice call on Treasuries Keith. I missed it. I like you now though, but I just can't do it, you know, because the 10-year in the U.S. is at 2.41%."
...Now if you go to the UK, which is hardly as rancid as other places which I'm going to show you in a second. The UK is at 1.04%.
...Now if I go to Germany. GERM-any. It's at -0.07%.
...If I go to Switzerland ... it's -0.41%.
...Where do you think U.S. yields are going if all of those are down here and there’s no case to be made for a huge global economic acceleration?” McCullough asks.
...Bond yields are going lower. The Fed is going to cut interest rates. Okay? And they're only going to cut interest rates after the market goes down.
...When growth and inflation are slowing at the same time, that’s Quad 4. Quad 4 is the best thing you can have for sovereign bonds.”
As anyone paying attention knows by now:
- Bond yields across the globe have in fact gone lower
- The US 10-year has fallen to 2.11%; the U.K. 10-year has fallen to 0.86%; German yields have fallen to -0.23% etc
- Topping it off, Powell signaled (or more accurately, the market interpreted) on June 4 that the Fed is going to cut interest rates only after stocks began to go south
Here's the clip from The Macro Show.