All goes down to CPI readings this Thursday but purely from a technical perspective, US2Y and US10Y are expected to cool down in the next few weeks from their current trading ranges that could go up to 1.4% and 2.1% respectively. If invalidated and they go higher into the coming week, expect more volatility and suffering for the stock market.
US2Y
US10Y
Curve Steepening is alive and well as the basis point difference between the US 10-year bonds and the US 2-year bonds reaches its highest level since 2017. This largely due to the Fed purchasing of shorter term bonds every month as part of its QE program to support the economy. Expect this trend to continue as the Fed maintains its support and refrains from...
