The market is pricing in immaculate disinflation | Forexlive

One way to look at the drop in Treasury yields is that it’s signalling trouble in the US economy but with stocks working on an 8-day winning streak, that’s tough to square.

Maybe the answer is more-simple: The market sees no recession but steady rate cuts and a return to the low-inflation/cheap-money era.

That’s a great dynamic for both bonds and stocks and it’s underscored by the decline in 5-year breakevens back to 2%.