Even if a recession ensues, which often is the case when the yield curve flattens, there is nothing to fear, as recessions are part of a natural economic cycle.
Tom Graff dives into China's use of currency manipulation to push the balance in its favor.
The central bank is in a new phase of monetary policy, but the market doesn't quite realize it yet.
Let's see what the two-year U.S. Treasury Yield chart and the 10-year U.S. Treasury Yield chart look like and where they may be going.
Look for the ETF to be back to the lows by the end of next month.
It likely would defend against higher inflation, even if that meant exacerbating a weakened economy.
If money's already tight, long-term rates may have already peaked.
If widespread selling of U.S. Treasuries was to occur, there would be two likely side effects.
The PRC is the paper tiger and we're the tiger that just woke up and is sick and tired of the beatdown the Chinese have delivered.
Fears that China would retaliate for tariffs by selling off their huge holdings of U.S. debt are overblown.