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IPFS News Link • Federal Reserve

How Long Before The Fed Tries To Manipulate Long-Term Rates Lower?

•, by Mike Shedlock

Yields Reveal a Mini-Revolt On the Long End

3-Month Yield: 0.04%

1-Year Yield: 0.06%

2-Year Yield: 0.11%

3-Year Yield: 0.20%

5-Year Yield: 0.50%

10-Year Yield: 1.20%

30-year Yield: 2.01%

In July of 2018 the spread between the spreads was only 12 basis points with the 2-30 spread at 38 basis points and the 2-10 spread at 26 basis points.

The 2-30 spread at 1.83 is higher than any time since February 10, 2017.

The 2-10 spread at 1.07 is higher than any time since April 7, 2017.

Fed Losing Control of Long End

On February 8, the Fed noted Monetary Policy Will Stay Accommodative For a Very Long Time. I commented "Like Forever".

On February 10, in a speech on the labor market Powell said the True Unemployment Rate is Actually 10%

In Powell's speech, he reiterated the message rates would stay low.

But spreads have widened dramatically which begs the question: 

How long before the Fed openly intervenes to push rates lower on the long end of the curve?