US 10 year yield continues to step down

The US 10 year yield moved to a intraday low of 2.584% today. That move took the yield closer to the next target at 2.53% to 2.557% (swing high from March 28 and swing low from April 7 before the run higher).

The price has now moved down 6 the last 8 trading days after peaking at 3.081% on July 21. From that high to the low today, the yield has moved down -50 basis points. Recall last week the FOMC raise rates by 75 basis points.

Helping the US move down in the face of a continuing Fed hike policy is a lowering of inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term expections (and perhaps fears of a recession). The ISM and PMI price info today saw sharp moves lower. Oil is down. Commodities Commodities Commodities are assets that are either naturally grown or occurring in the environment. Most commonly this includes precious metals such as gold, silver, and palladium.Beyond metals, commodities can also focus on agricultural or industrial goods that are central to manufacturing or other sectors. This includes crude oil, copper, wheat, and others.Relative to other assets, commodities are an extremely complex form of investment, with many similarities and differences to existing products.Commodit Commodities are assets that are either naturally grown or occurring in the environment. Most commonly this includes precious metals such as gold, silver, and palladium.Beyond metals, commodities can also focus on agricultural or industrial goods that are central to manufacturing or other sectors. This includes crude oil, copper, wheat, and others.Relative to other assets, commodities are an extremely complex form of investment, with many similarities and differences to existing products.Commodit Read this Term are also moving lower. Today the first ship with Ukraine crops was able to head out of port due to UN efforts to free up commodities to countries in dire need.

• Corn is trading near closing levels from end of year 2021 at 600 after trading as high at 824 at the end of April.
• Wheat is trading at 794 after closing the year at 770. The high reached 1363 in March.
• Soybean futures are at 1403 after trading as high at 1789 in June. The end of year close was at 1339.
• Lumber futures are at 532 well below the end of year close of 1122><> The price traded at the lowest level since August 2021 and down from the high of 1357.

Also helping is the positive spread between the US 10 year and the German 10 year yields. It currently is around 183 basis points. Back in mid June, the yield spread was only around 150 basis points. As a result, flow of funds into the US are attractive to global investors relative to a mid June.

German 10 year yields have moved down from an intraday high of 1.90% to the current 0.78%, while US yields have moved from 3.5% to the low at 2.58% today.