2s-10s: be vwery, vwery afwaid

Remember this post back in January? It said, inter alia, to watch the spread between the yield on the US 10yr note and the 2yr. It suggested something good was happening (US healing) and that we should all take note.

Here’s the chart today:


It doesn’t look so good for risk taking. It doesn’t mean the world will end, or that you have to join the Policy Bears in the bunker, but it means you have to protect yourself.

It also means I have to be careful with my precious metal shorts.