Tuesday, December 19, 2017

Ten year yield swings

It has dropped five basis, then jumped  ten basis points over a two week period. 

The government seigniorage is unstable, GS is having a hard time keeping the ten year yield fixed. The tax bill having its up and down effects on yields. The ten basis point swing is a half point change in interest charges over a two week period, government funding rates are very uncertain, at the moment.

The only way to cover the instability is to draw in a larger bunch of depositors. 

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