TNX bbye

Isn’t it fun getting today’s news yesterday?  Seriously, Across The Curve is mandatory reading, even if half of the lingo goes over your head (as it does mine).

This is one chart I had to capture:

Again, this is not a micro-cap; this is United States sovereign debt, ten year duration. 30-year mortgage rates will likely follow suit, barring some dramatic reversal.

If you are thinking about joining the party, Jansen has a warning:

I will reiterate what I said earlier about convexity traders. They are always the last guys at the party. This could last awhile but we are certainly in the final stages of this iteration of financial ugliness.

Myself, I am just watching with interest. No pun intended.

Update

Hey look, we set a record.

The 2year/10 year spread is a record 275 basis points.