More from the San Francisco Fed President
- Global uncertainty behind flight to US debt
It's not that tough to read. Short-term bills yield more than 10-year notes:
If it was just a flight to short-term safety, why not just roll the front end? It isn't, it's the market saying rates will be lower in 1-2 years because the economy is slowing.
You can argue the market is wrong, but the signal is clear.
