Friday, June 08, 2007
No time for chit-chat (or writing), but this is all you need to know about markets. The pain and ugliness is real. 5y5y inflation breakevens don't widen 40 bps in a week during normal conditions; per Monday's post, this a definitively bearish development for risky assets. Be warned.
update: It was ugly for a reason. The 10y TIPS screens were frozen. Reality is much less hideous, though still not pleasant.