Economist Jens Nordvig points out this morning that while the Fed is clearly posturing to remove the punchbowl that's kept the equity market anesthetized (or inebriated, if you will) against, at times, let's say fundamental headwinds these past many years, the 10-year treasury yield remains notably lower than it was the last time the Fed threatened to kill the party (resulting in a swift 20% correction) -- when, as he points out, inflation really wasn't a thing...
Oof!
"US 10-year yields are breaking to a new high for the post-COVID cycle (following Quantitative Tightening comments from Brainard). But they are still 70bp below the 2018 cycle high (when inflation was much lower)."
Yeah, no wonder, per our morning note, the growing skepticism among "smart money" players...
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