Yield Curve Gets Ugly, 10-Year Treasury Yield Falls Below 1% for First Time Ever, 30-Year at Record Low, on Rising Inflation

by Wolf Richter
Wolf Street

Ready for another shock-and-awe panic-cut by the Fed? Last time the Fed panic-cut was in 2007/2008, and look what happened to stocks.

Spooked by the Fed’s shock-and-awe surprise 50-basis-point rate cut, the already frazzled markets did a job today. Gold surged nearly 3%. The three major stock indices all swooned nearly 3%. And Treasury yields plunged across the board.

The 10-year Treasury yield plunged from 1.13% pre-announcement to an intraday low of 0.935%, and closed officially at 1.02%. When the yield drops, it means that bond prices rise. In late trading the yield fell below 1% again, and is currently at 0.997% reflected in the chart (data via Investing.com):

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