This post recaps the market-based indicators that I think are very important to follow. On balance, things look quite favorable. As always, all charts contain the most recent data available as of Monday (with a few exceptions, as noted, where I have estimated the latest datapoint).
Chart #1
I like to begin with 2-yr swap spreads (Chart #1), since they have proven to be excellent leading and coincident indicators of the health of financial markets and of generic or systemic risk (the lower the better, with 15-35 bps being a "normal" range). A more lengthy