Not based on your belief that borrowing overnight at 0.75% to buy Treasuries is a risk free arb.
The 5 year Treasury now yields 0.73%. Exactly how far out do you want to go to hit this "risk free" sweet spot you feel is out there?
And if this is such a good trade, how much are the banks borrowing from the Fed to put this trade on? Give me some concrete numbers for once. Thanks.
I stand corrected on Treasury rates. The spread is much narrower now than it was in 2008.