US 2s down another 9 bps
This is bordering on disorderly.
The US 2-year yield is down another 9.2 bps to 1.83% today. That compares to 2.26% on May 22 and 2.13% as recently as Thursday.
A drop of 33 basis points in less than two weeks is a sign of severe demand for safe assets and taking 55 basis points less than Fed funds compounds it.
I can't help but believe that USD/JPY is heading back to the flash crash lows near 105.00. The stock market is only hanging on because yields are falling but eventually the fear just takes over.
