Suddenly, today, the global economy left the ten year at 2.58%, almost a sustainable number for Congress under tax and sequester. The one year at 2.51%, leaving a 7 basis point spread to cover the cost of term transformation, not enough. The curve drops 13 point from one year to five yeaar. The Fed be lowering the IOER soon.
If Congress ever needed a moment of survival, this is it, they should be going after tax and sequester, and get the Fed to lower the IOER.
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