๐จ IS A STOCK MARKET CRASH LOADING?
Today something just flashed red in the bond market.
The 2Yโ10Y yield gap jumped to ~0.71%, the widest since Jan 2022 โ the biggest steepening in 4 years.
This is called bear steepening.
In plain English: the bond market is pricing risk, inflation, and fiscal chaos.
Historically, this setup is brutal for risk assets.
Since 1970, bear steepening preceded 7 out of 8 recessions.
Since 2000? Every single time โ stocks eventually cracked.
Hereโs the chain reaction:
โ Yields surge
โ Dollar strengthens
โ Liquidity leaves stocks
โ โRisk-onโ assets get hit first
โ Crypto follows last (and hardest)
Thatโs exactly why youโre seeing $XAU and $XAG bounce fast while $SPX and
$BTC lag.
If this curve keeps steepening, the market wonโt โslow downโ โ it will break.
Then what happens? The Fed comes in with cuts + QEโฆ and that is when the real melt-up begins.
Crash first. Liquidity later.
Are you prepared?
#Markets #Bonds #Recession #Crypto #Macro