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Otavio (Tavi) Costa, portfolio manager at Crescat Capital, highlights that the two-year real interest rate has reached its highest level since the Trump administration took office.
He also points to the current period as the deepest and longest drawdown in the history of the Bloomberg U.S. Aggregate Bond Index, indicating a concerning direction for the market.
Costa has previously noted that silver miners could see a breakout as selling prices at $75 per ounce far exceed $15–20 per ounce costs, resulting in strong margins for producers, according to a recent report. He also reported that the metals and mining ETF has broken out, with copper miners leading gains and steel producers included in the index, as detailed in a separate update. These observations follow his analysis of bond market performance and real rates.