Yield Sign

Slip kid, slip kid, second generation
Your sliding down the hill like me
--The Who

Stocks slippin' a coupla percent midday. Lots of potential 'reasons.' One is bank earnings reports that suggest little in terms of loan growth--particularly w.r.t. loan demand.

As stated by Peter Atwater this morning on the Buzz: "...when those who can't borrow can't and those who can borrow won't, it is hard to create a debt driven recovery."

Feels deflationary to me.

In that regard, my eyes keep gravitating to those 10 yr yields. They never really got going to the upside with stocks. And yesterday while stocks rallied, yields continued to sink.

A decisive break lower thru 29 (2.9%) might suggest another leg lower for risky assets.

Almost has me wanting to get long some govies...

no positions