Post-FOMC Yields 1: The Fed’s Floor Is NOT Useful

Financial markets rarely act as we expect them to

It has been a week since the Fed’s June 2021 meeting, which saw them raise the rate on excess reserves and reverse repurchase agreements by 5 basis points.

This was widely perceived by market participants to presage a more hawkish policy tone in the coming months, and they acted immediately, selling off USTs and driving yields higher.

Now that a week has gone by, and the market has had the time to process the Fed’s policy changes and their implications, how has the yield curve shaped up?

Read Article

the pensive nugget blue background logo

Get a different perspective on all things trading & investing every week!