Treasury Rates Update: May 4th, 2023
For the past 2 weeks, 10 Year Treasury rates were down 17bp. Past week: down 16bp. On 5.3.23 the Fed made an announcement that broadly hinted that future rate increases would be in a “wait and see mode.”
Red line is the most current rate while the green line is from one week ago. The entire yield curve for the 2-5 year terms decreased 30bp one month rate INCREASED an incredible 149bp. Prior week 3 weeks were down 134bps. These are very large changes. The kink is gone. Buckle up.
Yield curve inversion continues.
1 Month US Treasuries have gone WILD. Up this week 149bp and for the prior week it was up 87bp. In the prior 3 weeks, they were down 134bp. Something is up. Flight to safety from deposits in excess of $250,000? Anticipating Fed to curtail rate increases and maintain liquidity for equity market rebound? Debt ceiling?