The yield curve’s movement isn’t just about inflation; factors like Dollar shortage and demand for U.S. treasuries play a role, too; The return on an investment property is now BELOW the 10-year note yield

Mortgage rates are now officially TRIPLE where they were just 2 years ago.

However, the median sales price of a home continues to rise.

Affordability is so bad that not even investors can afford to buy.

Follow us @KobeissiLetter for real time analysis as this develops.

— The Kobeissi Letter (@KobeissiLetter) October 17, 2023

US Treasury Yields…
-2-Year: 5.19% (highest since Jul '06)
-3-Year: 5.01% (highest since Jul '07)
-5-Year: 4.86% (highest since Jul '07)
-10-Year: 4.83% (highest since Aug '07) pic.twitter.com/PtVscER9vX

— Charlie Bilello (@charliebilello) October 17, 2023

I'll never understand why people assume the yield curve only rises because of inflation…

It also rises when there's a Dollar shortage + a lack of demand for U.S. treasuries. https://t.co/3p74QZa8JH

— Financelot (@FinanceLancelot) October 18, 2023

The Treasury is slated to auction $13 billion in 20-year bonds on Wednesday and $22 billion in five-year Treasury Inflation-Protected Securities, or TIPS, on Thursday. https://t.co/fcma5UMlrB

— Financelot (@FinanceLancelot) October 18, 2023

US government is setting the stage for a major interest payment problem. Until Congress reduces the deficit, inflation won’t go away.