Replying to Avatar a source familiar with the matter

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
Avatar
Omekau 2y ago

So the market is predicting lower rates. This is people/businesses buying up short term bonds?

Reply to this note

Please Login to reply.

Discussion

Avatar
a source familiar with the matter 2y ago

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)

Avatar
Omekau 2y ago

Thanks for helping me understand 🤙