Since the beginning of this year, until last week, the markets were certain that inflation is on the down-path and that the Fed might cut interest rates somewhere in May this year. However, the February inflation data made the markets rethink their initial assumptions. The inflation seems to be more persistent than initially estimated, in which sense, the rate cutting time by the Fed might come somewhere in the second half of this year. The market reacted on officially released data, so the 10Y benchmark yields returned a bit toward the higher grounds, reaching the level of 4.3% during Friday`s trading session.
It should be considered that the week ahead might bring back some volatility. The FOMC meeting is scheduled for the week ahead, as well as FOMC economic projections. The market will gain more insights into the course of the potential future monetary actions by the Fed and will position accordingly. In this sense, some increased volatility might be expected. However, the level of 4.3% seems as a peak on charts at this moment, from where some relaxation might be expected, at least toward the 4.2% level.
Anyone who believes that “the fed” (white people) control the interest rates for they own massive debt. Has a nice shiny spot in Tartarus waiting for them in the afterlife. No one will remember you. No one cares.
spaceboots
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@Schmitty69, Scorching hot and slightly racially laced take. Kudo's for bringing those together into some existential reply regarding interest rates and the Fed.
ItsJ_
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A Very interesting Chart, I also will be watching the US 10Y. Thank you for sharing your idea.