The 10-year is at 2.8. "That's hardly where it was in the 80s. The 10-year should properly reflect i

Aug 18, 2022
Upload Media

The 10-year is at 2.8. "That's hardly where it was in the 80s. The 10-year should properly reflect inflation expectations and at 2.8 it's really a market that thinks inflation gets back towards 2% after a couple years." - Tom Lee

"And then people talk about the inverted yield curve between 10-year and 2-year. But what they have to keep in mind is that if inflation for the next few years is at 4, the 2-year HAS to be higher than the 10. So you're gonna get a forced inversion just because the contours of inflation and it doesn't mean that the curve on a real basis inverted. So I think the bond market is telling us a better story than the equity investors wanna believe."
Update Post

<div>The 10-year is at 2.8. "That's hardly where it was in the 80s. The 10-year should properly reflect inflation expectations and at 2.8 it's really a market that thinks inflation gets back towards 2% after a couple years." - Tom Lee<br></div><div><br></div><div>"And then people talk about the inverted yield curve between 10-year and 2-year. But what they have to keep in mind is that if inflation for the next few years is at 4, the 2-year HAS to be higher than the 10. So you're gonna get a forced inversion just because the contours of inflation and it doesn't mean that the curve on a real basis inverted. So I think the bond market is telling us a better story than the equity investors wanna believe."<br></div><div><br></div><div><br></div>
The 10-year is at 2.8. "That's hardly where it was in the 80s. The 10-year should properly reflect inflation expectations and at 2.8 it's really a market that thinks inflation gets back towards 2% after a couple years." - Tom Lee

"And then people talk about the inverted yield curve between 10-year and 2-year. But what they have to keep in mind is that if inflation for the next few years is at 4, the 2-year HAS to be higher than the 10. So you're gonna get a forced inversion just because the contours of inflation and it doesn't mean that the curve on a real basis inverted. So I think the bond market is telling us a better story than the equity investors wanna believe."

Show Less

Upload Media

Comments