Bond Market Screams For More Rate Cuts: Trump Policies Ensure They Come

The Fed was hoping to steepen the yield curve with its 25 basis point (quarter-point) rate cut. Instead, inversions strengthened dramatically.

 

 

Ahead of the FOMC announcement the 10-Year to 1-Month spread was +2.2 Basis Points. The spread is now -27.5 BPs.

The Fed was hoping to steepen the yield curve with its 25 basis point (quarter-point) rate cut. Instead, inversions strengthened dramatically.

Inversions Strengthen

What Happened?

  1. Bond Yields Crash On ISM Report, More China Tariffs
  2. Global Manufacturing Recession Started, Trump Makes Matters
  3. Another Undeclared War: Trump Threatens Full Naval Blockade of Venezuela

More Rate Cuts Coming

Trump wants more rate cuts.

He will get them, along with a recession.

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