Posted on 08/14/2019 5:00:12 AM PDT by Carriage Hill
Moody's Capital Markets Chief Economist John Lonski on the U.S. trade tensions with China and concerns about the U.S. economic outlook. The yield curve is blaring a recession warning.
The spread between the U.S. 2-year and 10-year yields on Wednesday turned negative for the first time since 2007. Such a development has occurred ahead of each and every U.S. recession of the last 50 years, sometimes leading by as much as 24 months.
Predicting the future eh?
So, tell me John, exactly when is Jesus returning?
The track is not perfect nor infallable.
They’d be bidding down the short term rates if the Fed wasn’t manipulating them.
The media practices Gnosticism.
Liberals want a recession!
Except there is no such thing as a short term debt auction.
I think you need to be more specific.
Ok... There is NO SUCH THING as a short term debt auction.
Doesnt exist.
No auction.
None.
Better????
The Treasury page says they do.
There are some 4-week and 8-week T-Bills for sale next week.
https://www.treasurydirect.gov/instit/annceresult/annceresult.htm
Dude; the Fed sets SHORT TERM RATES. It includes overnight rates for banks. Thats the ONLY rates they set. The rest are set by the market.
This is Fed 101.
Nope.
Not arguable.
Once again, the Fed sets short term rates, including overnight rates that banks pay if they dont have enough reserves and have to borrow overnight from the Fed.
Those are the ONLY rates set by the Fed. The rest are set by the market.
Nope.
Not arguable.
...
You don’t want it to be arguable because you are wrong.
The government does auction short term debt. You’re wrongly claiming that the funds rate is the only short term rate.
That’s why I invited you to be more specific, but you let your feelings get hurt instead.
I think you will find this article informative:
Treasury bills are more predictably influenced by the fed funds rate than notes and bonds because Treasury bills and the fed funds rate are competing investments in the money market. The money market is the market for high-quality, short-term debt instruments. Just as individuals put uninvested cash into money market mutual funds, where they can earn interest without putting principal at risk, institutional investors for the same purpose invest directly in the money markets by buying instruments like fed funds and Treasury bills. As investments, fed funds and Treasury bills generally offer comparable yields.
https://www.thestreet.com/story/1156889/1/how-does-the-fed-funds-rate-affect-treasury-bills.html
drudge?...who dat?
Yes. Overnight rates.
The 4-week and 8-week bills that are auctioned next week are set by the market. Short-term debt auction.
The short term interest rates set by the Fed, which are as short a period of time as OVERNIGHT are different from Notes, Bills and Bonds.
My original post dealt with Fed set rates.
The Short term debt securities with a duration of weeks are short for bonds BUT ARE DIFFERENT AND LONGER THAN Fed short rates.
Get it?
I think you will find this article informative:
I may have found that informative....over 30 years ago.
I am not sure why you are still chewing that bone trying to salvage something.
I am not sure why you are still chewing that bone trying to salvage something.
....
Because I’m right and you’re wrong.
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