Folks, this is a barn burner of a rush out of T bonds. With yields launching like this we should note that the the curve is actually declining as people are getting the heck out of short-term bonds faster than any other kind.
So you can see that this gold negative alignment is only becoming more so today. Here we recall all those continually telling us how bullish gold’s fundamentals are and then we recall that this here spot on the internet has been calling them ‘not fully baked’ at best, with the yield curve (and strong US economy) being among the most bearish funda’s on gold.
10, 5 & 2 year yields from Bloomberg
As for the regular markets, this is a risk ‘ON’ picture, so we’ll have to see how things go there. I have been wondering how long the stock market can rise with inflationary expectations going down the drain but interestingly, the TIP-TLT meter is popping today in opposition to the commodity wipe out. Yet with both TIP and TLT down nominally, it may not mean much. Weird and complex market right now. I guess summer play time is over.
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