It's future expectations of Federal Reserve action
The Fed should only cut gradually after killing inflation or suddenly in a financial panic
This enormous shift is basically GFC baby one more time
Discussion
So the market is predicting lower rates. This is people/businesses buying up short term bonds?
These are futures, basically market expectations of what the Federal Reserve will charge for short-term borrowing
But also some folks are buying short term bonds (presumably as a safe haven, better to have Uncle Sam owe you directly than support you via informal guarantees in FDIC)
Thanks for helping me understand 🤙