deep thoughts about deepening inversion

What's wrong with the yield curve? It's inverted, that's what. And not just a little bit. At 5.25%, the federal funds rate is the highest rate on the curve and some maturities (like the five year note) are on fire. 5-year yields are now 4.91%, almost 35 basis points below fed funds.

Interestingly, long bond yields are not falling as far -- at 5.07%, they're above yields in the middle part of the curve. That's worth noting as it could signal that there is still some longer-term inflation concern out there (even if the short-term to mid-term focus has shifted to growth worries).