Testing Nerves

I'm falling down a spiral
Destination unknown
Double crossed messenger
All alone
--Golden Earring

The central story amidst the ongoing market volatility continues to be falling long bond yields. Ten Year yields are at 1.6% this am.

This spells deeper yield curve inversion. A shorthand proxy for the yield curve is the spread between Two Year and Ten Year Treasury yields. Yesterday the 2s10s spread went negative for the first time since the credit crisis days.

Recession Countdown Begins: UST 2s10s Yield Curve Inverts For First Time In 12 Years https://t.co/NqkncuwspJ

— zerohedge (@zerohedge) August 14, 2019

Meanwhile, the gold complex continues marching higher.

The bulls' nerves are certainly being tested here.

position in gold