MarketPR
The Treasury curve is in focus after Jeffrey Gundlach argued that divergent moves across the maturity spectrum carry a direct message for Kevin Warsh and the Federal Reserve.
Gundlach's read: the bond market believes the Fed has to start acting on inflation. What the tape reflects, in his telling, is investor doubt that the central bank will ultimately follow through.
Gundlach reads the curve The Treasury curve rarely speaks quietly.
Gundlach pointed to divergent moves across the curve as the key signal, reading the configuration as evidence that fixed-income investors are already pricing in a Fed that hesitates.
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