Caution! Ignore this market warning at your peril. The Eurodollar futures market inversion had deepened and broadened. Eurodollar yields inverted before, for example in 2000, 2005 and 2018. Turned out that Economic Hades was about 18 months away then. What about now?
------EP. 188 TOPICS------
00:00 INTRO: The Eurodollar futures curve has deepened AND broadened its inversion.
00:39 The Eurodollar yield curve is like the US Treasury yield curve but global.
02:38 The E$ curve had been getting flatter heading into December 2021, then it inverted.
05:13 The E$ curve raised itself higher in January 2022, good news? No, the inversion stayed.
08:29 The Federal Reserve does not think much of markets, like eurodollar futures.
10:31 Bill Dudley, manager of the Fed's portfolio, blew off the E$ market in 2007.
14:15 The E$ curve inversion spread from one point to many contracts in February 2022.
19:09 What does it mean when Eurodollar future contracts are grouped by color (packet)?
22:14 OUTRO: The Eurodollar market does not believe Fed rate hikes are justified.
----EP. 188 REFERENCES----
Major Euro$ Curve Developments (also not clickbait): https://bit.ly/3BtPTuy
Euro$ Curve Chromodynamics: https://bit.ly/3JF7jaL
Alhambra Investments Blog: https://bit.ly/2VIC2wWlin
RealClear Markets Essays: https://bit.ly/38tL5a7
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---------THE TEAM---------
Jeff Snider, Head of Global Investment Research for Alhambra Investments. Master of ceremonies, Emil Kalinowski. Illustrations by David Parkins. Audio and video editor, Terence. Episode intro/outro music is "When To Stop" by Lofive from Epidemic Sound.
------FIND THE TEAM-------
Jeff: https://twitter.com/JeffSnider_AIP
Jeff: https://alhambrapartners.com/author/jsnider/
Emil: https://twitter.com/EmilKalinowski
Emil: https://www.EuroDollarEnterprises.com
David: https://DavidParkins.com/
Terence: https://www.VisualFocusMedia.com