Yields took another dive lower today with the 1-year to 7-year inversion still intact.
Last night Apple
Bond yields plunged.
Apple Cites “Mounting Uncertainty”: APPL Down 7% AH, Nasdaq Futures Down 2.3%
Sharp, Unexpected Decline in ISM Numbers Led by Plunge in New Orders
Debt Watch
Despite the flattening and now inverting yield curve, note that the spread between the 10-year and 7-year bond actually rose since January 1, 2018.
The spread between the 30-year long bond and the 10-year note is nearly what it was a year ago.
I believe this is a strong bond market signal that the end of the bond bull market approaches. It’s possible it’s already over. But I do expect one more strong push lower in yields as recession hits in 2019.
We have enormous deficits as far as the eye can see from a starting point of $22 trillion in debt.
Got Gold?
Mike “Mish” Shedlock
This article was originally published at Mish Talk.
