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2Y Yields Collapse Most Since 2009 As December Rate-Hike Odds Crater
The probability of a rate-hike in December collapsed from 65% yesterday to just 45% today after Yellen's admission that any and everything will keep them on hold as they wait for nirvana to allow interest rates to rise again.
This rippled across the Treasury curve and after Tuesaday's record-breaking spike in yields, 2Y yields collapsed 13bps today - the biggest single-day plunge since QE was unleashed in March 2009.
Charts: Bloomberg
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BOOM BABY YEAH!!!!
Does this not seem counter-intuitive? Teh Yeller just confirmed what everyone (here at least) has been saying for years, that ZIRP is a terminal affliction, but people are still piling into teh "safety" of bonds? Two-year post-dated cash?
That's it! Do It! Just go ahead and kick the circle jerk out another Fed meeting.
Jesus H Fucking Christ, we're surrounded by incompetent morons.
I can see Bugs Bunny now, dancing and singing; "We're gonna raise the rates, We're gonna raise the rates. We're gonna raise the rates."
ZIRP 4 EVAR
NIRP HAS NOT SERIOUSLY BEEN DISCUSSED
Oh noes - the market will take a big dump tomorrow...........
Who fucking cares ?
Saddle up, and get ready to ride, bitchez.
doom! ALL HAIL THISTOOSHALLPASS
Easy Does It.
IMO, there is an excess of sarcasm in this item. I would have preferred an increase to 0.50 percent, which could have been justified as technically necessary without any "tightening" intended. But apparently Yellen felt that the international repercussions were sufficienly serious to postpone, once again, such a move. Small moves in the yield of treasury bills are of interest only to that small coterie of leveraged speculators who gamble on such.
1928 ish or thar abouts I'd reckon