E The Inverted Yield Curve Is Actually Bullish

However, the bull flattener means something entirely more positive. It could mean sentiment for a stronger economy is strong. Or that investors are piling into longer-term bonds. The latter seems to be the case as money from around the world is pouring into U.S. bonds.

Why? Because trillions of dollars’ worth of global government bonds have negative yields. Negative!

Of course, money will flow to the best return and that is in good ol’ America. We also can see that in the strong U.S. dollar, which everyone needs to buy U.S. bonds.

Don’t believe me. Former Fed Chief said the same thing.

Mutual funds specializing in bonds are also seeing record inflows of money.

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Disclosure: No positions in anything covered.

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