Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action news and analysis.

Good afternoon. Today is Thursday, December 14th, and I'm your host Kim Kahn. Our top story today.

The epic move in the bond market continues as traders adjust to what many are, may be prematurely,

calling a new landscape for U.S. rates.

The 10-year yield fell below 4% for the first time since August.

This plunged down from 5% in late October, seeing swings that strategists say look untethered to U.S. economic forecasts.

The shorter end of the curve has seen even sharper moves.

The two-year yield is below 4.4 percent, levels not seen since June.

I.N.G. says yields have seen a remarkable ongoing market move, especially as it's been interlaced

with some tailed auctions, indicative of resistance to the falling market rates narrative in the long end.

But there's been little from

Chair Powell and the FOMC to stand in the way of this. Recent data has not really

validated the dramatic fall-in yields, they add. They say fair value for the 10 years at 4%, but the 2024 path looks to be to 3.5%,

which would be an overshoot.

If something breaks, we fast track all of that and jump to a new environment.

That has not happened as of yet, but we think the stakes have risen.

The inversion spread between the twos and tens has narrowed to below 50 basis points.

A twos-tens curve in version is considered to be a signal in

upcoming recession, but yields are fluctuating sharply as the consensus moves

towards the Fed pulling off a rare soft landing. Golden Sachs now expects three early 2024 rate cuts starting in March.

Chief Economist Jan Hatzius says they forecast consecutive 25 basis point cuts in March, May, and June to reset the policy

rate from a level that Powell has recently taken to describing as well into restrictive territory

...