It appears nothing can move long-dated U.S. Treasury yields higher

It appears nothing can move long-dated U.S. Treasury yields higher. At around 2.6%, the yield on benchmark 10-year notes is almost unchanged from where it was in late 2017 just before the enactment of the Tax Cut & Jobs Act.

Why it matters: Ed Yardeni, president and chief investment strategist at Yardeni Research, argues in a recent note to clients that the yield curve is signaling "weak global economic growth and low inflation without necessarily implying a recession in the U.S."

By the numbers: Yardeni notes that since the Tax Cut & Jobs Act, "the 12-month federal budget deficit has ballooned from $681 billion through December 2017 to $914 billion through January 2019."

That explains the strong rebound in U.S. stocks so far this year, he says. Credit spreads "also support this thesis" as the difference between the 10-year Treasury yield and high yield corporate bonds has fallen significantly since Dec. 24.

The bottom line: "Perhaps," Yardeni writes, "there is too much pessimism about the global economic outlook."

Go deeper: Last week, U.S. Treasury yields fell to their lowest level in about 2 months