A sigh of relief, the ten year back to partial equilibrium, 2.53. The short end is jammed up as usual.
Why can't Treasury use its cummutatitve property and normalize the curve, to its advantage? Commutativity cost liquidity, they had little to begin with , and they are hit with hurricanes, forest fires, floods.
But if Treasury straightens the curve, Congress gets liquidity back and pays a ten year weather insurance bill. No one wants to spend that long term debt capacity on another insurance plan until the meetup. Everyone has their finger on their favorite government chip. Treasury curve gets funny when Congress gets jammed.
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