Tackle Today: Interest Rates Balloon
September 19, 2022
«Ten-Year Yield tops 3.5%.»
Ballooning interest rates continue to dominate the headlines. This morning, the 10-year Treasury yield topped 3.5%, reaching its highest since April 2011. Meanwhile, the 2-year Treasury yield, which closely tracks forward expectations for the Fed Funds rate, climbed just shy of 4%. That’s its highest level since 2007.
Rate whispers have been ringing the alarm bells about the inverted yield curve and the pessimistic picture it paints about the economy’s future.
CNBC quoted one such analyst this morning: “The 10s-2s spread plunged last week and was trading at -46 bps on Friday and is just a few basis points from setting fresh multi-decade lows,” wrote Tom Essaye of the Sevens Report. “The signal from 10s-2s is clear: The economy is going to slow materially and likely contract materially in the coming quarters, and it’s a message I believe we continue to need to heed.”
Video of the Day: Why You Should Use Implied Volatility to Buy and Sell Options
In this video, Coach Noah explains the importance of Implied Volatility when considering buying or selling options.
Chart of the Day: Ten-Year Treasury Yield ($TNX)
New high achieved. Unfortunately, there’s still a yawning chasm between the level of inflation and the Fed Funds rate (8.3% vs. 3%). History suggests the gap must narrow.
Today’s line up
Traders Lounge 11 AM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.
Bear Market Survival Guide MasterMind Group 7:00 PM EST
In these MasterMind Group sessions, we will be illustrating how to acquire and pay for portfolio insurance. We’ll also lay out what you can expect from these monthly pow-wows moving forward.
Watch the Stock, Options, Commodity, and Forex Reports to help you prepare for the week.
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