First Time Ever: Entire Yield Curve Crashes Below 1.0%
The global stock market and bond markets are in a state of panic over the coronavirus. Day after day it's been a case of lower and lower yields.
This morning, the yield on the 30-year long bond crashed another 24 basis points to yet another record low. The entire yield curve is below 1.0%. Yet inversions persist out to two years.
The 30-year long bond yield is now inverted with the Fed Funds Rates by 12 basis points.
The Fed is going to cut rates to zero on its next move.
- Oil Price War and Liquidity Crisis Coming
- Crude Dives to $30, a Whopping $20 Below Cost of Production
- Italy Quarantines Over 25% of the Population, Trump Not Concerned
- Very Deflationary Outcome Has Begun: Blame the Fed
This is precisely what happens when Fed-sponsored asset bubbles break.
But other than that, It's Just Like The Flu™ .
Mike "Mish" Shedlock