Jan 5, 2015. NEW LOWS in the curve

5/10 is on more aggressive flattening path than in 2004…WHEN THE FED WAS ACTUALLY TIGHTENING…from 1% to 5.25%, July 2004 to June 2006. Without an ACTUAL change in rates, the market is perceiving a TIGHT Fed.  Current 5/10 year treasury yield spread is 46.6.  Low in 2006 as Fed was in latter stages of hiking campaign was -6.6 bps.

5_10_new low 2015

Posted on January 5, 2015 at 3:27 pm by alexmanzara · Permalink
In: Eurodollar Options

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