Bonds are telling the story of this market, and if you’re not listening you’re already behind!
Growth, inflation, liquidity – it’s all written in the bond market’s moves, making bonds the most critical tool for any trader.
Period.
The 2 year US Treasury yield exploded higher the moment the Fed started cutting rates – a massive tell that expectations shifted on a dime, as the chart clearly shows.
Now that same yield has flipped direction and is plunging lower. You know what that means: liquidity could start flooding the system once again.
When liquidity increases, money doesn’t sit still – it moves fast.
We’re watching capital rip through the market, rotating in to international stocks like it’s got something to prove.
The Fed might think they’re steering the ship with their rate tweaks, but the bond market says otherwise.
It’s the bond market that leads the way – always has, always will.