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timevalueofbtc / Nik Bhatia
npub1qw6…2v52
2023-03-08 23:00:13

timevalueofbtc on Nostr: To give you a sense of just how differently the front end and long end of the yield ...

To give you a sense of just how differently the front end and long end of the yield curve are behaving.

2s are 13 bps ABOVE their levels from Thursday 3/2, six days ago.

10s are 10 bps BELOW their 3/2 levels.

Expectations are firm for higher policy rates, followed by lower rates. 2s trade with a 5 handle, yet 10s struggle to stay above 4%. It shows the unwillingness of investors to part with their Treasuries despite the higher discount rates.

This is typical late cycle fixed income market behavior.
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