Operation Twist is back — and the timing isn't subtle.
Deutsche Bank laid it out plainly: sell the front, buy the back, twist the curve down. A soft form of financial repression.
Last time this ran was 2011, when the economy was weak. This time? The economy is fine. They're using it to manage the cost of strength — three months before the midterms.
The curve got twisted. But the underlying pressures — deficits, war-driven inflation, the AI debt wave pushing yields higher — didn't go anywhere. They're still there, just papered over for now.
This is about optics and timing, not fundamentals. The macro pressure is still building.
$SPY
Deutsche Bank laid it out plainly: sell the front, buy the back, twist the curve down. A soft form of financial repression.
Last time this ran was 2011, when the economy was weak. This time? The economy is fine. They're using it to manage the cost of strength — three months before the midterms.
The curve got twisted. But the underlying pressures — deficits, war-driven inflation, the AI debt wave pushing yields higher — didn't go anywhere. They're still there, just papered over for now.
This is about optics and timing, not fundamentals. The macro pressure is still building.
$SPY