One year, 2.34; ten year 2.83. We are below 50 basis points. We are importing deflation, EMs are still dropping export prices, even oil took a dump below 70, but came back.
The slope will take a sudden jump to inversion, unpredictable. I remember asking why guv didn't put its debt at the short end, rates at zero. Now I ask the opposite, when will guv take out a mortgage to pay off its shot term debt. The answer is that to take out another mortgage is to admit defeat by Congress, they officially give up discretionary spending.
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