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Oops, Something Else Broke

So steepening the yield curve probably isn’t such a hot idea even if it’s only 12 bps thus far:

And the US Treasuries are watching 10’s being sold, 2’s being bought up:

IF the 2’s to 10’s spread continues to a -0.50% spread (20 plus more points or so from here) or narrower, the steepening will mark the beginning of a severe tightening of the financial conditions along with an expansion of monetary inflation resulting in higher CPI/PCE later this year.

Good job boys, good job.

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