A curve inversion will last until the Fed stops tightening. As long is the Fed keeps tightening and inflation remains benign, the curve should be inverted.

He's telling you the Fed's probably got more room to continue to hike, but inflation is not going to be a problem. That tells me that the 10-year doesn't need to move that much, but the two-year note probably is going to track toward a 5 percent fed funds rate.

What's happening is that the inflation premium is being taken out of longer-dated securities.

The Fed sounded optimistic about growth, but its view that the risks of inflation and inflation expectations were reduced is the hallmark buy signal for the back end (of the bond curve),

The signal the market is getting from the governor is that yes, inflation will remain an enemy but attempts to bring it down have failed and that corruption is now a bigger animal that needs to be vigorously dealt with.

As the Nikkei moves up in price, it signifies growth in the Japanese economy. That will signal higher yields in Japan, which will make them at the margin less net buyers of U.S. Treasuries.