Spreads

If you haven’t seen this, you should take a look. The 2-30 spread is at all-time highs. Yes, that’s all-time highs.

There are 2 options: either the curve is anticipatory and inflation is going to run higher, or the curve is wrong and the current inflation fears are hype. Both sides have valid arguments, and for those that say the market is always right, I’ll counter that markets tend to be wrong especially around turning points. Just food for thought.

Relevant ETFs: TLT, TBT, AGG, MUB, TIPS

Last 5 posts by Yaron Sadan

• Portugal, and Yields, and Iran . . . - January 30th, 2012
• The Hunt for Yield - January 26th, 2012
• All eyes should be on Iran - January 23rd, 2012
• Quick note - January 19th, 2012
• Our monkey mind - January 17th, 2012

No Comments

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a comment

You must be logged in to post a comment.