- A “twist steepener” in the bond market is widening the gap between short- and long-term U.S. Treasury yields. This dynamic is dragging the dollar lower, exacerbated by President Trump’s political interference in the Fed, weak growth, and inflation risks, according to analysts at Convera. The dollar is down 9.69% on the DXY index year to date.
The S&P 500 hit a new record above 6,500 for the first time ever yesterday, and futures contracts on the index were down only a little before markets opened this morning in New York, indicating that investors are relatively sanguine about equity valuations being as high as they were right before the dotcom crash of 1999–2002.
