U.S. equity markets are flirting with record highs as hopes of Fed interest-rate cuts simply refuse to die.
10y Treasuries closed at 3.94%, and 3-month bill rates remain at elevated levels (5.35%). The Treasury yield curve remains deeply inverted (1.41bps) because Treasury Bill supply remains simply enormous — over half a trillion will be auctioned again this month. Excessive indebtedness and steady deficit spending continue to be a burden even though most in the market these days simply ignore it. This is just shocking to me.