The plunge in yields continues and even unflappable stocks are starting to crack a little… 7Y Treasuriy yields just cracked below 2% for the first time since Nov 2013. What is perhaps most worrying for the exuberant equity market is the dramatic flattening in 2s30s today (2Y +2.5bps, 30Y -9bps on the week). Wondering why bonds keep rallying… see below…
Yields are tumbling across the complex (except the short-end)
Leaving the 7Y back under 2%
With 2s30s at one year lows…
And this is why… Treasury shorts actually added into the rally of the last few weeks…
Charts: Bloomberg
via Zero Hedge http://ift.tt/1oJW7uP Tyler Durden