Yield curve – Some obvious thoughts….

Bespoke has note up this morning about the Yield curve (the separation between the 10y yield and the 3m yield).  So I realized that I hadn’t really looked at it in a while, and pulled it up.

While we’ve reached an interesting upside point on the curve, it is important to notice that even having reached that point in 2001, there was still a lot of downside before we started to see the markets move up again.

Mike over at MarketSci has an interesting short term strategy for trading the SP-500 based on the yield curve.  I’ve replicated some of it although I haven’t been able to match his results.