Kinesis on Nostr: To your hypothesis, many bitcoin thought leaders grabbed onto nouriel roubini’s ...
To your hypothesis, many bitcoin thought leaders grabbed onto nouriel roubini’s recent paper on covert yield curve control.
Perhaps that’s the case but my view on it is Yellen is financing on the short end because rates are higher but something closer to floating. It’s akin to what many mortgage borrowers are doing right now - considering 3/1 ARMs over 30 year because they don’t want to lock a bad rate in for a long time.
The market has shown us no signs of reduced to demand for the long end (eg the inverted yield curve).
In fact, the swaps market is telling us rates across the curve should be lower. And Powells interest rate policy has held both the long and short end 200-300bps higher than the market expects based on future growth expectations.
Perhaps that’s the case but my view on it is Yellen is financing on the short end because rates are higher but something closer to floating. It’s akin to what many mortgage borrowers are doing right now - considering 3/1 ARMs over 30 year because they don’t want to lock a bad rate in for a long time.
The market has shown us no signs of reduced to demand for the long end (eg the inverted yield curve).
In fact, the swaps market is telling us rates across the curve should be lower. And Powells interest rate policy has held both the long and short end 200-300bps higher than the market expects based on future growth expectations.