1. The yield curve has significantly flattened during 2014 with the spread between 2-year Treasury Notes and 10-year Notes falling from 264 basis points in January to 169 basis points today:

Yield_Curve

Falling yields at the long end (10-year and 30-year) and rising yields at the short end (2-year and 5-year notes) are undeniable signs of a slowing economy.

2. Industrial commodities such as copper, crude oil, silver etc. are collapsing:

Copper

Crude_Oil

Silver

Tumbling commodities prices are a symptom of a worsening global economic condition much more than they are the 'economic stimulus' that many are offering.

3. While many focused on the carnage in energy equities during today's trading session, the damage in the high-yield corporate bond space was much more subtle but perhaps no less significant. The warning signs resulting from an aggressive chase for yield during the past couple of years have been mounting by the day and this week's shake-out in the energy space may be the proverbial straw that breaks the camel's back. Energy is the largest sector of the high-yield market, accounting for about 17% of the Credit Suisse High Yield Index and spreads in the energy credit space have blown out in recent weeks:

E&P_Credit

Energy credit spreads are now over 100 basis points cheap to the market after being 20 basis points rich to the high yield index just 4 months ago

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