Born under a bad sign. Is this the birth of a financial crisis? Normally when the Ted spread widens out 50 beeps the shit is about to hit the fan. So when treasuries and swaps invert what the hell does that say. A glut of treasurys nobody wants to buy? Uncharted waters. Stay tune. Good opp for the arbs– it is the analogous to the 1990s sub-treasury pricing anomaly on Euro bond swapped back to floating. Negative swap spreads may be the new Black. Black Monday that is.
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