Here's a longer term look at German yields, for perspective...And here's the divergence since the U.S. election between German and U.S. 2-year yields... Trump's Secretary of Treasury, Mnuchin, was doing his first rounds on financial TV this morning and gave us some guidance on a timeline for policies and impact. Most importantly, he says we'll see limited impact from Trump policies in 2017, and that the growth impact won't come until 2018. So now as Mnuchin tells us not to expect a growth impact from Trump policies until next year, maybe the Fed lays off the tightening rhetoric for a while. Remember this chart we've looked at, which looks like higher gold to come (a lower purple line), and lower yields.

Source: Forbes February 24, 2017 02:57 UTC