The difference between the 2-year Treasury yield and the Fed interest rates dropped to -1.69%, the most in at least 35 years.
This gap is now even larger than in 2008 and in 1989, a few months before the recession began.
The 2-year Treasury yield is considered a leading indicator for the next Fed’s interest rate moves.
In other words, the bond market expects that the Fed will be cutting rates at a rapid pace in the coming months.
This has been driven by increasing evidence of the deteriorating labor market and many indicators suggesting this trend will continue.
Is the Fed behind the curve?

It's officially Fed week and we are trading it.
Over the last 6 weeks, the S&P 500 has swung well over $5 trillion of market cap.
It's a fantastic environment for traders.
Subscribe at the link below to see how we are positioned going into Fed week:
thekobeissiletter.com