Yield Curve Today

With all yields up and up the most on the short end, the yield curve – taken in the vacuum we’ll call today’s market activity – is telling us 2 things…

1)  The market is cheering a strong economic situation with little perceived risk and

2) Is not in a gold-positive stance (unless the China demand and India flood gates openingstories that would put gold in line with positively correlated assets have credibility)

10, 5 & 2 year yields from Bloomberg

Here’s the monthly view of the 10-2 (at yesterday’s close) with gold faded in the background.