Weak Payrolls and a Big Dollar Rally: Long Rates Rise as Short Rates, Metals, and the Dow Fall
Weak payrolls and a big dollar rally framed the week: long rates rose as short rates, metals, and the Dow fell. Bank credit contracted, the Euro made a 16-month low, and TLT set another low.
Source: Peak Prosperity
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DW NOTE
The Fed raised rates to 3.75%-4% last week, yet the 10-year yield climbed to 5.24% — 146 basis points above the policy rate. That's not a term premium, that's the bond market pricing in either persistent inflation or persistent supply, and the central bank has no credible answer for either.