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?)

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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  Treasury Secretary Yellen says it's now "highly likely" the US will run out of cash by early June.

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

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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  A wise man once said "Every century, we experience the most extreme fluctuations in interest rates, ranging from the highest to the lowest."

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!

 

 

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