The yield curve rises today as nominal yields rise as well. Implication, when taking into account the TIP-TLT ratio in the previous post is that risk is still ‘ON’ (also see junk vs. T bond spread below) and that a new squall of market bullishness – if it materializes – can include a commodities/precious metals bounce. *
10, 5 & 2 year yields from Bloomberg
Here’s the HYG-TLT ratio.
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* Look guys, I realize that many precious metals and even commodity/inflation players are enthusiastic sorts, to say the least. So when someone speculates about something short-term bullish amid a growing pervasive bearishness please filter it with the other more moderating language in these posts and with the fact that intermediate picture technicals are bearish. Okay?
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