This is clear example of the liquidity trap. They should study their God Keyness a bit better. If you cut your rates too low, your monetary policies become impotent..

This is clear example of the liquidity trap. They should study their God Keyness a bit better. If you cut your rates too low, your monetary policies become impotent.. pic.twitter.com/MfDBLaIh8P

— Data Patron (@DrahoslavP) February 25, 2021

https://twitter.com/GregMannarino/status/1365036974088675330

Traders are betting U.S. inflation will surge in the short term before ebbing longer-term. The 5-year inflation rate is now above the 10 year one for the first time since 2008. The gap between the two has never been as big as it is now. https://t.co/GmSuXW3FWq pic.twitter.com/YCs30pTISD

— Lisa Abramowicz (@lisaabramowicz1) February 25, 2021

bond vol first, then equity vol

— Alastair (@StockBoardAsset) February 25, 2021

There was a mysterious collapse in U.S. swap spreads on Wednesday. Lots of theories out there, mostly questionable.

The next big event for swaps is the SLR extension. One key player in the decision, Fed's Quarles, speaks Thursday. More on @TheTerminal pic.twitter.com/7QSkluDJ2M

— Stephen Spratt (@StephenSpratt) February 25, 2021

The worst 7-year auction in history?

*Tail was 4.4% (avg to low yield) worst since to 2009 (when data begins)
* Bid2cover was 2.04% (blue) also the worst (lowest) since 2009
* % of indirect bidders=38.1%, lowest since 2013.

This is how auctions look when bonds are radioactive pic.twitter.com/TX41SzRhal

— Jim Bianco (@biancoresearch) February 25, 2021