BREAKING: The US Financial Conditions Index is up to 99.17, the tightest financial conditions since June 2025. The index has surged +0.77 points over the last 20 days, the fastest increase since March-April 2025. This is also the 2nd-fastest pace of tightening since the 2022 Fed interest rate hiking cycle. This comes after the index fell to its lowest since May 2025 in February. The recent surge has been fueled by rising Treasury yields, oil prices, and the US Dollar, along with widening credit spreads and falling stock prices. Tighter financial conditions suggest a further slowdown in economic activity in the upcoming months. The US economy needs lower yields.(The Kobeissi Letter)