From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley
Last week, we touched on the weakness that’s been developing further out on the yield curve.
The long end simply hasn’t kept pace with shorter-term yields. This is understandable given the magnitude of the move in the 30-year since summer 2020. At some point, the shorter end of the curve needs to play catch up. And it’s done just that these past couple months.
Now it’s time to focus on longer-term rates, as further downside pressure will eventually put the current economic recovery into question.
Let’s put the recent action in rates into perspective as we head into year’s end. [Read more…]