St Louis Fed Financial Stress Index Soars To Highest Level Since Covid Outbreak As Bond Volatility Soars With Fed Rate Hikes And Bank Failures As US Treasury 10Y Yield Rises 12 Basis Points (Flight To Safety)

The US economy got beaten to a pulp by the Chinese Wuhan Covid virus outbreak in early 2020. The Fed intervened with massive money printing along with massive spending by Congress and the Administration. Result? 40-year highs in inflation and a Fed counterattack in terms of rate hikes.

The result of Fed rate hikes? Failing regional banks trying to cope with duration extention and scared depositors. And then we have the St Louis Fed Financial Stress index reaching its highest level since the Covid outbreak of early 2020. And with that, bond volatility is higher than that found during the Covid crisis.

With the expectation of MORE rate hikes, the 10-year Treasury yield jumped 12 basis points.

The architect of The Fed’s “too long for too long” is also the US Treasury Secretary, Janet Yellen.

Yellen: “It wasn’t my fault!”