The Catalysts Behind The Spike In Treasuries Tuesday

Bob Iaccino joins Ben to provide his personal insights regarding the recent unexpected decline in long term Treasury rates. At this point, Bob suggests recent weakness in the ISM services data and a rather tepid labor market report are potential economic slowdown indicators. The inflation narrative has waned, and a run up in the dollar as well as demand for low yielding government bonds expresses a penchant for capital preservation and liquidly preference. The yield curve is also flattening as short term rates have risen while long term rates have fallen. Bob also suggests global economic weakness is also a source of funds moving into Treasuries.