Despite resilience in US data, 30Y Yields have plunged back below the 4.00% Maginot Line this morning...
Source: Bloomberg
The last few weeks have seen US macro data reverse its recent trend of disappointment...
Source: Bloomberg
The long-end of the curve is outperforming...
Source: Bloomberg
But, 'do not fight The Fed' seems to be the narrative and expectations for a March rate-cut are rising once again...
Source: Bloomberg
And the market is pricing in over 160bps of cuts for next year...
Source: Bloomberg
Financial Conditions are now at the same level of looseness as of May 2022...
Source: Bloomberg
That is 300bps of Fed rate-hikes ago!!! Is that really what The Fed wanted?
