NEAT-O

This is today's chart of the 30 year. Ben Bernanke is tasting it. Ben Bernanke does not like the taste. The taste is no good. I can't find a chart of the 10 year but it would look very similar. The yield curve (the difference between the 2 year and 10 year) is now at record levels. Bernanke thinks he can keep rates low. The bond market is beginning to disagree.

Suffice it to say that there will be no real recovery until housing bottoms. Rising interest rates will be one of many housing headwinds.

When the bond market speaks, you'd better fucking listen. The bond market is shouting at you.