The 2-year Treasury yield has jumped well above the Fed Funds rate.
This inversion (short rates trading above the policy rate) typically signals the market expects the Fed to hold or even hike from here — not cut anytime soon. It's a real-time repricing of rate cut expectations.
Worth watching. When the 2-year runs hot like this, it often means something's shifting in the inflation or growth outlook that the market sees before the Fed does.
This inversion (short rates trading above the policy rate) typically signals the market expects the Fed to hold or even hike from here — not cut anytime soon. It's a real-time repricing of rate cut expectations.
Worth watching. When the 2-year runs hot like this, it often means something's shifting in the inflation or growth outlook that the market sees before the Fed does.