Tuesday, May 11, 2021

My marker says we are closer to a rate cycle

 When the difference between the one year and two year breaches 15 basis points then the primary dealers will support government borrowing at the short end. 15 basis points is enough to hire a trader on the short end.

But I think the Fed knows this and try to avoid the condition. It is like a sticking point, but hen we breech it the rate cycle will be quite rapid.

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