#Flattener

Authored by John Rubino via DollarCollapse.com, The yield curve is one of those indicators that most people have heard of but few can explain. In part this is because it’s usually a non-issue, only becoming important enough to argue about during the final year of long expansions. Like now:

Over the weekend, we presented an analysis by Citi looking at how long after the yield curve inverts do investors have before they should start worrying. As Citi's Jeremy Hale noted, "sometimes inversion provides a timely signal for the economic cycle a la 2000, where Professor Curve predicted

A 'funny' thing happened a month ago. The Treasury yield curve suddenly started to collapse... despite gains in stocks and positive economi data surprises... the question is, why? Here's one possible reason why.. Originally submitted by GovTrader, TL/DR: Tax reform creates pension fund

TL/DR: Tax reform creates pension fund incentive to buy 30yr bonds NOW. Currently, the top corp tax rate in the US is 35%. It looks most likely that rate will drop to 20% when tax reform passes. If you are a corp with an underfunded pension fund, you get a tax incentive to fund the pension THIS

Having predicted back in July that the "most dangerous moment for markets will come in 3 or 4 months", i.e., now, BofA's Michael Hartnett was - in retrospect - wrong (unless of course the S&P plunges in the next few days). However, having stuck to his underlying logic - which was as sound then