Skip to main content

The global stock market and bond markets are in a state of panic over the coronavirus. Day after day it's been a case of lower and lower yields.

This morning, the yield on the 30-year long bond crashed another 24 basis points to yet another record low. The entire yield curve is below 1.0%. Yet inversions persist out to two years.

Crash!

The 30-year long bond yield is now inverted with the Fed Funds Rates by 12 basis points.

The Fed is going to cut rates to zero on its next move.

RECOMMENDED ARTICLES

What's Happening?

  1. Oil Price War and Liquidity Crisis Coming
  2. Crude Dives to $30, a Whopping $20 Below Cost of Production
  3. Italy Quarantines Over 25% of the Population, Trump Not Concerned
  4. Very Deflationary Outcome Has Begun: Blame the Fed

This is precisely what happens when Fed-sponsored asset bubbles break.

But other than that, It's Just Like The Flu™ .

Mike "Mish" Shedlock