Repo Man? Treasury Repo Index Explodes And US Treasury Curve Kinks

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.

The first trading day of 2019 comes in with a … bang.

First, the US Treasury Repo index exploded.

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And the US Treasury curve has developed a serious kink between the one year tenor and 3 year tenor. Better known as curve inversion.

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The UST 10Y-2Y curve has resume declining and is in line with the U-3 unemployment rate.  Note that unemployment starts to rise BEFORE the beginning of every recession. And the US economy is not seeing rising unemployment … yet.

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Is Fed Chair Jerome Powell the Repo Man?

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Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases I receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

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