Posted on 05/03/2022 6:33:46 AM PDT by Browns Ultra Fan
The U.S. Treasury market is showing signs of stress that may have implications for whether the curve keeps steepening.
Over the past month the curve has retraced from an inversion to a steepening driven by a surge in yields on benchmark 10-year bonds. That has led to interesting outlier indications, as traders weigh the outlook for Federal Reserve interest rate increases and inflation.
The US Treasury yield curve has settled-in at 20.383 bps (effectively zero) as The Fed continues its war on inflation.
On the SOFR front, we see SOFR Coupons being slow to benefits from Fed rate hikes. So, SOFR Coupons are behaving like Stouffer’s lasagna, frozen and tasteless.
On the other hand, mortgage rates continue to soar on EXPECTATIONS of Fed rate hikes.
Meanwhile, CoreLogic revealed that March 2022 home prices were still sizzling at 20.9% YoY.
So, its official. The Federal Reserve is best exemplified by former Yankee/Mets first baseman “Marvelous” Marv Throneberry. When players presented Mets’ manager Casey Stengel with a birthday cake but neglected to give piece of cake to Throneberry, Stengel replied to Throneberry when asked why no cake, “Because I was afraid your were going to drop it.”
Just like The Federal Reserve, the honorary Marv Throneberry of the the global economy.
(Excerpt) Read more at confoundedinterest.net ...
The Fed is way behind the curve on raising interest rates. Unfortunately, they are going to drive the country into a recession because they were trying to fluff the economy for Biden by delaying the hikes, and will now have to be aggressive to deal with the hyperinflation.
“..The Fed is way behind the curve on raising interest rates. Unfortunately, they are going to drive the country into a recession because they were trying to fluff the economy for Biden by delaying the hikes, and will now have to be aggressive to deal with the hyperinflation....”
Yep.
Libs destroy everything they touch....EVERYTHING.
They should be banned from politics...better yet, shipped right of the country altogether. They’re AINOs: American In Name Only.
Time to pay the piper.
“Libs destroy everything they touch....EVERYTHING.”
“Conservatives” are AT LEAST as responsible for this debacle. Do not let them off the hook, not even rhetorically.
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