Long bond yields now negative
The US equity market has made a decent bounce today. The S&P 500 is up 35 points to 2880 with a few minutes left to trade.
Contrast that with bonds. Early in the day, yields were up across the curve. 30-year yields rose to 2.32% -- a 7 bps rise. That's all been erased and long bond is now trading at 2.25% down 0.4 bps on the day.
The front end is still holding onto some gains but all that's doing is pushing 2s10s closer to inversion, with the spread down to 12 bps.
What does it all mean? Safe to say that bonds (and gold) are gearing up for more pain. The fixed income market isn't always right but I wouldn't bet against it.
