Loading ...Things are just breaking left and right in the market now.
Shortly after the 1PM stock market close (but before the 2PM bond market closure) we pointed out that the 2Y yield had flash crashed on what appeared to be a short seller capitulating violently. Well, something else rather remarkable happened in that brief spike in activity: as 2Y yield tumbled first below 2.58% and then below 2.56%, the 12 Month (1 Year) Treasury – 2 Year Treasury curve inverted suddenly, sliding as low as -0.02%.
As one would expect, this was yet another of those “since 2008” events, because the last time the 1Y-2Y curve inverted was during the panic of the 2008 financial crisis.