10-Year Treasury Yield Drop Signals Return to Normal Range
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Today's "fair value" estimate of the 10-year yield suggests the current rate is unusually high and will soon fall.
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Yesterday's sharp drop in the 10-year yield signals the process of normalizing has started.
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CapitalSpectator.com's fair value model shows the market rate surged to a 40-year high vs the model estimate.
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History suggests such an extreme spread between market and model rates does not last long.
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Yesterday's yield drop may mark the start of normalizing the spread between market and model rates.