Trouble With The (Yield) Curve! 10Y-2Y Slope Approaching Inversion As Fed Plans Rate Hikes And Bitcoin Falls – Confounded Interest
![](https://analisagold.com/wp-content/uploads/2022/03/trublcurb-736x470.png)
The US Treasury yield curve (10Y-2Y) is rapidly approaching inversion at 20.5 bps (where the 10-year yield is lower than the 2-year yield). But the 10Y-3M curve is generally steepening at 173.33 bps.
![](https://confoundedinterestnet.files.wordpress.com/2022/03/trublcurb.png?w=736)
Of course, the driving force behind the flattening of the 10Y-2Y curve is the rapidly rising 2-year Treasury yield (orange line). The last time the 10Y-2Y curve inverted was in 2019, prior to the COVID outbreak in early 2020.
![](https://confoundedinterestnet.files.wordpress.com/2022/03/ycspread102.png?w=736)
The Wu Xia United States Federal Reserve Funds Shadow Rate has finally climbed back into positive territory.
![](https://confoundedinterestnet.files.wordpress.com/2022/03/woozie.png?w=736)
At last look, The Federal Reserve is forecast to raise their target rate 7 times over the coming year. And with the increasing forecast of rate hikes, we are seeing the cryptocurrency Bitcoin fall from near $70,000 to $41,817.
![](https://confoundedinterestnet.files.wordpress.com/2022/03/bitwirp.png?w=736)
President Biden announced that he will be issuing an executive order to combat rising energy prices (the rising energy prices that he caused in the first place with … executive orders). Let’s see what happens next.
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