Today all ECBs joining FED rate cuts REPO.

Credit market is Center of Financial Universe. It is under stress.

Yield curve and credit spread red lights blinking. TED spread going higher.
Last chart shows comparison of current market between 2008 and current when 30yr vs 5 yr spread rising along with credit spread JUnk to TLT dropping fast what followed – 2008 market crash.

Is market signinling again big WARNING?

” FROM 7/29/2017 :

The Federal Reserve’s tampering at the short end of the yield curve has rendered this traditional predictive device useless. We have to adapt. With that in mind, it’s important to note that the 5-year/30-year yield spread has been tightening coincidentally with a slowdown in GDP growth from already low levels. There is the potential for a move from where the curve is now to inversion within a year. Attention must be paid. An outright recession would likely follow, but we’ll feel a downdraft whether the data fits the formal criteria or not. The yield curve can still be our early-warning indicator, with the proviso that we ignore the short maturities and watch the 5-year/30-year spread or maybe even the 5-year/20-year. You can monitor this yourself by checking T-bond yields on most financial news sites. Find the 30-year yield (or 20) and subtract the 5-yield from it. Right now, the difference is around 1.1 percentage points. The lower it goes, the closer recession may be.”