The two year rate now .16 and the on year at .05 My long observation tells me a 15 basis point difference will get a bond trader on the job. At that point Congress gets into a battle over interest charged and Janet begins borrowing the one year. The Fed follows and we get a rate cycle while the Senators figure out how to pay the sudden increase in interest charges.
From the time Biden assumed power until now, the interest charges have increase by about 260 billion. That is a 5% hole in the budget and the Californians are quite shaken in their beliefs of free money. We are about two weeks away from rate cycle if the ten year yield keeps rising at its daily rate.
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