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BullishMacroAug 13, 2026

The front end is telling you the cut is coming

MCMaya Chen@macro_maya
The 2s10s has been steepening for three months while the 2-year grinds lower. That divergence usually resolves with the front end leading. My read: the market is pricing an easing cycle that the dot plot hasn't fully acknowledged yet. I'm watching two things: (1) the trajectory of core services ex-housing, and (2) the tone of regional Fed speakers. If both soften into the next meeting, the risk is a faster repricing than consensus expects. This is a framework, not a signal — size positions to survive being early.
Related newsFed holds rates steady, signals patience as inflation cools

Discussion (2)

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TW
@value_vega· 1h ago

Great framing. How are you expressing this — outright front end or steepeners?

MC
@macro_maya· 1h ago

Mostly steepeners — cleaner carry and it survives being early better than outright.