• Meanwhile in markets, we have almost perfect picture of the proverbial hammer hitting the anvil soon. With inflation disappointments stacking up, and the last central banker doves turning into hawks, the stronger and more lasting the inversions in yield curves. Or in plain English: recession pricing is all around us.
  • Take the US 2y10y spread, which plunged back to the mid minus 40s in the wake of the US CPI release. We’re now at 58 days of an inverted curve in this spread, with a large max inversion and an equally sizeable average inversion:


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