New Record Low Yields on 10- and 30-Year Bonds: Double Cut?
CME Fedwatch Odds
If these yields hold the Fed will practically be forced to cut interest rates by 50 basis points on March 18.
As it stands a quarter point cut would leave the 10-year treasury yield inverted with the Effective Fed Funds Rate by 16.3 basis points.
What's Happening Background
- Feb 19: Fed Minutes Highlight Coronavirus Concerns and Uncertainty 8 Times
- Feb 24: Bond Yields Crash and Gold Soars on Pandemic Threat
- Feb 25: CDC Admits Spread of Coronavirus in the US Appears Inevitable
- Feb 25: Lie of the Day: This is Not a Pandemic
- Feb 25: Nearly 50% Odds of "At Least" 3 Rate Cuts by December
- Feb 26: Trump says We are "Very, Very Ready for the Coronavirus, for Anything"
- Feb 27: Useless Act: California Monitors 8,400 People for Coronavirus; 33 Test Positive
- Feb 27: Containment Fails: Coronavirus Tweets of the Day
- Feb 27: Tweets of the Day: Iran's VP Infected, Japan Closes All Schools
- Feb 28: 5 Mistakes by the CDC and FDA Set Back Virus Testing
Mike "Mish" Shedlock