Model Portfolio | Addendum

The gas tank is empty on long maturity bonds....

An MBA geek might consider GDP to be the "income" of the US while the T10yr is the "cost of capital". As such, a business will borrow when the cost of capital is less than the income it can produce.

This implies a relationship between nominal GDP (purple line) and the T10yr rate (blue line).

Nominal Q2 GDP p…