10-year yield falls below Fed funds
How tough is it to be Fed Chair Powell right now?
Here's a guy who ratcheted up the pace of rate hikes and was promising several more. He grew more aggressive 4 months ago and now the market is flashing a major recessionary signals and telling him to cut rates.
The 10-year yield just fell to 2.39%. That's a couple basis points below the 3-month bill rate but it's also now below the Fed funds effective rate. The Fed has a range of 2.25%-2.50% but the effective rate today is 2.41%.
10-year borrowing rates are down 36 basis points since the start of the month and 20 basis points since the FOMC decision. At 2.386%, the 10-year yield is at the lowest since December 2017.
