US Treasury Curve 10Y-3M Falls And 10Y T-yields Fall As US GDP Grows To 8.33% (So Why Are Short-rates Still Near Zero?)

by confoundedinterest17

The US economy is now forecast to grow at a rate of 8.33% following the massive Covid lockdown. And the US Treasury 10Y-3M curve fell along with GDP forecast growth.

Over a longer period, you can see that the 3M Treasury yield virtually evaporated after The Fed went to near zero short-term rates following the Covid outbreak so that the 10Y-3M curve is really just the 10Y curve.

READ  Green Man! Fed Helps Lower 4W T-bill Yields To 0% (20 European Nations Have 2Y Treasury Yields Of Less Than 0%)

The stock market reacted positively to today’s good economic news. The markets are feeling hot, hot, hot.

Since GDP growth is 8.33%, why won’t The Fed return the short-end of the curve to “normal” levels, like in early 2019.

READ  US Pending Home Sales ERUPT +25.3% YoY As M2 Money Grows At 24.2% YoY

One reason why The Fed keeps short-term rates at near zero is the funding of the $28 TRILLION In US debt.

Are The Fed and Treasury pushing too hard??

Better that video than this one!

 

 

623 views

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.