Replying to Avatar Phundamentals

The bailout was for long duration bonds impaired by the recent rate hikes. The Fed will likely buy long bonds indefinitely, driving down rates on the long end (10-30 years)

On the short end, the markets are speculating as to how many rate cuts will be done in the next 1-2 years - that’s what’s driving the price of 2Y treasuries.

Avatar
nontoxicmaxi 2y ago

Thanks for taking the time to explain 🙏🏽

Reply to this note

Please Login to reply.

Discussion

No replies yet.