To give you a sense of just how differently the front end and long end of the yield curve are behaving.
2s are 13 bps ABOVE their levels from Thursday 3/2, six days ago.
10s are 10 bps BELOW their 3/2 levels.
Expectations are firm for higher policy rates, followed by lower rates. 2s trade with a 5 handle, yet 10s struggle to stay above 4%. It shows the unwillingness of investors to part with their Treasuries despite the higher discount rates.
This is typical late cycle fixed income market behavior.
timevalueofbtc / Nik Bhatia
npub1qw…j2v52
2023-03-08 23:00:13
Author Public Key
npub1qw6e8meaj5gzk49alamh9qf35lpmml5sq7ctjtxhcjk55qppmcjs0j2v52Published at
2023-03-08 23:00:13Event JSON
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"content": "To give you a sense of just how differently the front end and long end of the yield curve are behaving. \n\n2s are 13 bps ABOVE their levels from Thursday 3/2, six days ago. \n\n10s are 10 bps BELOW their 3/2 levels. \n\nExpectations are firm for higher policy rates, followed by lower rates. 2s trade with a 5 handle, yet 10s struggle to stay above 4%. It shows the unwillingness of investors to part with their Treasuries despite the higher discount rates. \n\nThis is typical late cycle fixed income market behavior.",
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