5-year yields in focus
It's tough to overstate how dramatic the moves in bonds have been this weekend. US Treasury yields continue to crater.
I think they're a clearer sign of where the market thinks the Fed is going than anything else. US 5-year yields are down another 16.6 (!) basis points today in a continued swan dive from 1.70% at the start of the year.
The last time that 5-year rates were this low, Fed funds were at 0.50%. Lower yields are a hint the market sees Powell & Co. going that low, if not lower.
