Macro, the conditions.

Rates, credit, liquidity and the release calendar — the plumbing every other page sits inside.

Where things stand

updated 2h ago

The macro read is bullish (score 5.79), with volatility at 14.63 and -22.06% over the week.

The 10-year splits into a 2.42% real yield and 2.26% of expected inflation. Over six months the real part moved +0.58 points and the inflation part -0.06 — which half is moving tells you whether the bond market is pricing growth or debasement.

We don't publish a rates forecast — these are today's market-implied levels, not a view.

What this is

Rates, credit and liquidity are the conditions every other page sits inside. None of this is a trade and none of it is a forecast — it is the state of the plumbing, with the series named so you can pull the same numbers from the source yourself. Where our own readings of it disagree, we say so rather than picking the tidier one.

Where the cycle is — and where our two reads disagree

Business-cycle model: SLOWDOWN · confidence 59%

Reading from: yield curve narrow, credit spread normal, vix complacent.

Macro regime score: BULLISH · 5.79

Yield curve+2.40
Credit risk+4.58
Liquidity+9.78
Real rates+3.95
Industrial demand+8.23

These two disagree today. One reads the direction of leading and coincident indicators; the other scores the level of a handful of macro conditions. A level can be comfortable while the direction is deteriorating, which is exactly what a turn looks like from the inside. We publish both because picking the tidier one is how a site starts telling you what you want to hear — and neither is a forecast.

The indicators behind that call

These are the inputs as of the cycle model's last run (3h ago)— the live VIX in the volatility section below refreshes separately, so the two can differ slightly.

Yield curve (10y − 2y)0.48 pts
High-yield spread2.71 pts
Investment-grade spread0.79 pts
10-year real yield2.42%
Volatility (VIX)14.64
10-year Treasury yield4.64%
Fed funds rate3.63%
S&P 5007,798.99

Rates, credit and liquidity

Yield curve (10y − 2y)0.48 pts+0.08 1maround the middle of its rangehigher than 38% of 12,547 readings since 1976

The gap between 10-year and 2-year Treasury yields. Below zero is the inversion that has preceded most US recessions — though with long and irregular lead times.

We tested this
Tested as a short-horizon input for choosing positions, it carried no forward information. We have NOT tested it as a long-horizon recession indicator, which is the claim it is famous for.

Change over a year−0.09
SeriesT10Y2Y
History held12,547 readings from 1976-06-01
Latest reading2026-08-13
High-yield credit spread2.71 pts+0.02 1mnear the bottom of its rangehigher than 9% of 812 readings since 2023

What lenders demand above Treasuries to hold junk-rated corporate debt. It widens when credit gets nervous, usually before equities notice.

We tested this
Tested alongside the curve as a short-horizon input and found lagging. Its reputation as an early warning is a longer-horizon claim we have not measured.

Change over a year−0.22
SeriesBAMLH0A0HYM2
History held812 readings from 2023-07-10
Latest reading2026-08-12
10-year real yield2.42%+0.06 1mnear the top of its rangehigher than 96% of 5,907 readings since 2003

The 10-year yield after inflation, read off inflation-protected Treasuries. This is the number gold and long-duration assets actually respond to.

Not tested by us
We publish this level and have never tested whether it predicts anything. It is context, not a signal.

Change over a year+0.51
SeriesDFII10
History held5,907 readings from 2003-01-02
Latest reading2026-08-12
10-year breakeven inflation2.24%−0.01 1maround the middle of its rangehigher than 51% of 5,908 readings since 2003

The inflation rate the bond market is pricing over ten years — the gap between nominal and inflation-protected yields.

Not tested by us
We publish this level and have never tested whether it predicts anything. It is context, not a signal.

Change over a year−0.13
SeriesT10YIE
History held5,908 readings from 2003-01-02
Latest reading2026-08-13
Dollar index (trade-weighted)119.1−2.1 1min the upper part of its rangehigher than 80% of 5,164 readings since 2006

The dollar against a broad basket of trading partners, weighted by actual trade. Broader than the DXY that gets quoted.

Not tested by us
We publish this level and have never tested whether it predicts anything. It is context, not a signal.

Change over a year−1.4
SeriesDTWEXBGS
History held5,164 readings from 2006-01-02
Latest reading2026-08-07
Federal Reserve total assets$6.76tn+$24bn 1maround the middle of its rangeits year-on-year growth is higher than 40% of 1,182 readings since 2003

The size of the Fed balance sheet. Falling means quantitative tightening is still draining.

Not tested by us
We publish this level and have never tested whether it predicts anything. It is context, not a signal.

This series only goes up, so ranking its level would read near 100% forever and say nothing. The ranking above is of its year-on-year growth rate instead — as a percentage, so that a dollar change from a much smaller base decades ago still compares fairly with today.

Change over a year+$119bn
SeriesWALCL
History held1,235 readings from 2002-12-18
Latest reading2026-08-12
Overnight reverse repo$0.5bn+$0.2bn 1mnear the bottom of its rangehigher than 9% of 3,304 readings since 2003

Cash parked at the Fed overnight. It drained from trillions to near nothing over 2023-25; that buffer is now gone.

Not tested by us
We publish this level and have never tested whether it predicts anything. It is context, not a signal.

Change over a year−$56.8bn
SeriesRRPONTSYD
History held3,304 readings from 2003-02-07
Latest reading2026-08-13
Treasury General Account$964.0bn+$190bn 1mnear the top of its rangehigher than 96% of 1,235 readings since 2002

The Treasury's own cash balance at the Fed. Refilling it pulls liquidity out of the system; spending it down adds liquidity back.

Not tested by us
We publish this level and have never tested whether it predicts anything. It is context, not a signal.

Change over a year+$543bn
SeriesWTREGEN
History held1,235 readings from 2002-12-18
Latest reading2026-08-12
M2 money supply$23.16tn+$99.6bn 1maround the middle of its rangeits year-on-year growth is higher than 34% of 798 readings since 1960

Broad money — cash, deposits and near-cash. Monthly, and revised.

Not tested by us
We publish this level and have never tested whether it predicts anything. It is context, not a signal.

This series only goes up, so ranking its level would read near 100% forever and say nothing. The ranking above is of its year-on-year growth rate instead — as a percentage, so that a dollar change from a much smaller base decades ago still compares fairly with today.

Change over a year+$1.21tn
SeriesM2SL
History held810 readings from 1959-01-01
Latest reading2026-06-01

Each number is placed against its own history, and each range states how far back that history goes — the yield curve is ranked against 50 years, the high-yield spread against three, and those are not the same claim. Every series is named by its official code so you can pull the identical numbers from the Federal Reserve yourself; this is public data and you should not have to take our word for any of it. Open a row for what it measures and, where we have tested it, what we found. Some series are weekly or monthly, so a “1m change” may span only a few observations.

Volatility and the dollar

VIX14.63−22.1% trend
Dollar trend−0.85%
Conditions, not calls. Nothing here says what to buy, and nothing here says how much to risk — where a source of ours carries a position-sizing instruction, we leave it out on purpose. Cross-asset view · Equities · Our record. Educational information, not financial advice.
Follow the daily outlook: RSS · today's brief