Ummm. Houston we have a problem.
4.85% on the 10 year.
Damn things are getting out of control
Stock futures starting to dive. pic.twitter.com/5nUb1QoGLA
— QE Infinity (@StealthQE4) October 4, 2023
The real fun starts when investors refuse to buy U.S. debt that’s going to be inflated away by the Fed.
Last year, the main consensus was a #recession. Now, the consensus is #SoftLanding.
Just a reminder:
"When all experts agree, something else tends to happen." – Bob Farrell
h/t @ISABELNET_SA pic.twitter.com/5FiKdKztMJ— Lance Roberts (@LanceRoberts) September 27, 2023
"Soft landing" was always a bullsh*t narrative.
"Transitory" inflation was always a bullsh*t narrative.Are you recognizing a pattern?
Below is an Establishment/MSM headline this morning (versus what we've been warning for many months).
Question the narrative people. pic.twitter.com/ymIrawAHaU
— Hedgeye (@Hedgeye) October 4, 2023
H/T LCDNEWS pic.twitter.com/G9v6sxwYd6
— Win Smart, CFA (@WinfieldSmart) October 4, 2023
The three-month yield rose to 5.62% the other day.
At 5.62% the yield was 29 basis points above the Effective Federal Funds Rate (5.33%), and is therefore now fully pricing in another 25-basis point rate hike by year-end 🚨🚨🚨
How many rate hikes until something breaks in… pic.twitter.com/8Qxv2yDjro
— Wall Street Mav (@WallStreetMav) October 4, 2023
Billionaire Investor Gundlach Said Tuesday That a Severe Economic Downturn Is Becoming More Likely
Jeff Gundlach of DoubleLine Capital warns that rising bond yields indicate an imminent U.S. recession. He emphasized the rapidly de-inverting U.S. Treasury yield curve and stated that even a slight increase in the unemployment rate will trigger a recession alert. Historically, an inverted yield curve has foreshadowed every U.S. recession since 1969. Other Wall Street experts also foresee potential economic turmoil due to the bond-market shifts.
h/t Simian_Stacker