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Losing Faith In The Fed? 2Y Yields Break Below Key Technical Level Amid Intraday Plunge
Despite the second (or third) dead cat bounce of the day in US equities (as machines pin the S&P to VWAP), US Treasury yields are collapsing-er to the lows of the day. While 30Y and 10Y yields are now down 10bps or so from earlier highs, the move in 2Y is most notable as it has broken below the 200-day moving average for the first time in 2 months... suggesting that no matter how assuredly The Fed says it will raise rates, the market sees Yellen cutting 'em back promptly.
Losing Faith?
As the whole curve collapses...
Stocks catching down again...
Charts: Bloomberg
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losing faith in this country!
Lost that a long time ago. I haven't had faith in this country since Lehaman.
come on...Obama and what has happened over the last 6 years...make the nixon years look great
Lehman was what should happened to all those criminal bankers...with lots going directly to jail!
hooray
Drop baby! Daddy needs a good paycheck!
--Mortgage Broker
That raising rates talk is some funny shit right there, I don't care who you are.
I think, Dr., that Yellen will raise rates to send buyers to European bonds.
please think before commenting
downed you - think first
raising Fed Funds rate will do the opposite. Foreign buyers will flood more money into Treasuries to earn the spread between US and them.
entire yield curve is rallying. 30yr price touched the mid-March auction support price (98`24) twice yesterday and this morning and it rose straight up from there.
long TLT and SPXU
they are in a tough spot now.
market is ignoring their lip service, economic numbers are plunging..
if they don't raise rates in June, they'll look like a bunch of bumbling lying idiots.
the only way to now justify not raising rates is to admit via official statement that the economy is officially worsening despite ZIRP.
that will obviously do wonders for the near record high stock market.
Enter NIRP -- Stage Left -- Stage Left
Thank you.
All part of the later (2016) but moar narrative, that we can now expect to go mainstream.
One cannot simply lose something one does not have
lol The 2yr is pricing in about 27bps over the current 10-25bps fed funds rate. At this rate we should get a rate increase when the sun turns into an orange giant.
Uh Oh... Danger Will Robinson...
We trotted out Lacker to pump up a rate hike and the market paid it ZERO heed.
Your little game isn't working now.
New plan? Or you just gonna keep your mouths shut now?
If rates rise *at all* the banks would simply start lending straight to the Fed ... why wouldn't they increase their reserves and get paid more to do so?