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2Y Treasury Yields Top 4.00% For First Time Since Oct 2007

Tyler Durden's Photo
by Tyler Durden
Wednesday, Sep 21, 2022 - 03:06 PM

For the first time since October 2007, the yield on 2Y US Treasury bonds has topped 4.00%...

...having soared over 60bps since Fed Chair Powell gave his hyper-hawkish speech at Jackson Hole...

Meanwhile, the terminal rate for Fed rate-hikes has risen to 4.52% this morning, expected in March 2023...

Do we really think The Fed can get there without folding to political pressure or flip-flopping to abate risk-asset carnage?

As we noted earlier, how do we think Elizabeth Warren is going to react to this?

Finally, which would you rather own - 2Y notes backed by the US govt paying 4% or the S&P 500 paying 1.7%?

TINA is dead... and remember all of this is priced into the rates market already...

Maybe not so much the stock market.

Meanwhile, the German yield curve is the most inverted... ever...

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