<p>Powell's return to more hawkish triggered bond marekt moves:</p><ul><li>the 2 year UST yield rose more than 10 basis points, above 5%, not seen since 2006</li><li>the 10 year is under 4%</li><li>this meant the spread between the 2s and 10s, at more than 100bp, hit its deepest inversion since September 1981</li></ul><p>The yield curve "inverts" when yields on shorter-maturity notes exceed that of longer-dated ones. It suggests expctations are high for even more restrive monetary policy:</p><ul><li>markets are pricing even further Fed rate hikes, the probability of a 50bp rate hike at the upcoming March meeting rose above 50% </li></ul><p>The inversion is also used as an indicator of a recession. Admittedly its been signalling this for months and months and so far, nope..</p><p>---</p><p>ICYMI:</p><ul><li><a href="https://ift.tt/2TGsj8K" target="_blank" rel="follow" data-article-link="true">Forexlive Americas FX news wrap 7 Mar: Powell leans toward an acceleration toward 50 bps</a></li><li><a href="https://ift.tt/2pI6HQJ" target="_blank" rel="follow" data-article-link="true">BlackRock says Federal Reserve could hike rates to 6%, hold for an extended time there</a></li></ul><p>---</p> This article was written by Eamonn Sheridan at www.forexlive.com.

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