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?)

Sharing is Caring!

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.

See also  Credit is about to roll over and the Fed starts to worry about inflation?!

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.

See also  The underperformance of most US stocks began in March... the same month Treasury bonds yields peaked and also began their downtrend.

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!




Leave a Comment

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