Feb. 1 at 2:45 PM
$SPY $TLT $BND $SHV $SCHO
The 200 basis point spread is coming.
FED rate to 3-3.25%
2 year 3.25%
10 year 4.25%
30 year 5.25%
That longer term debt is going to stay elevated on the yield side. People want paid to hold that balloon.
30 year mortgage rates at best will move to 5.7-5.9%
That’s at best. 6-6.5% looks to be the level.
The government needs to step aside and never buy MBS’ again.
When businesses begin to fail, they need to let them fail.
Complete reset will come.
Strong balance sheets will survive, debt ridden companies and individuals will fail.
https://wolfstreet.com/2026/01/31/us-government-sold-766-billion-of-treasuries-this-week-yield-curve-steepened-as-30-year-treasury-yield-rose-to-4-87/
