Bond Yields 1 vs 2 yrThere's still an inversion between 1 and 2 yr bonds, which means the market still has a rate cut priced in for next year. On top of that, it looks to me like we're headed over 5% this year, so even the 1 yr needs to go up.
What's interesting is that the rate inversion started at the same time as the market rally, last Oct.
I dunno if the market fixes some of that Tuesday or just gets all pumptarded because inflation only went up .5% m/m like Germany did, lol. .5% m/m extrapolates to 6% yearly, and it took then a few hours to figure it out, lol. Remember the target inflation is 2%, and it;s gonna require more than one more rate hike to drop it down.
Pretty good chance Tuesday winds up being a pump and dump like Europe, but I'm gonna carry a small position in TLT and BITO puts. Decide against doing a straddle.