Quite of bit of Steepening ongoing in the Feds favored yield curve benchmark 3 month/10 year.Fed buying t-bills maybe one excuse for the move or is it Hawkish Fed and And Now Stronger macro-outlook causing the Yield curve to bear steepen? break it down bit further is it investor expectations for higher inflation,I don’t think so or better Economic growth,Quite possibly yes.
From IFR news regarding t-bill purchase
For the week itself the scheduled highlight is the Fed. As mentioned, they will be in with daily RP’s as well as two rounds of term-RP’s. They will also be in with daily open-market operations as they reinvest maturing MBS holdings and as the begin their balance sheet expansion via the large-scale purchases of T-bills. The latter begins tomorrow(10-16) when the Fed will buy $7.5 bn in T-bills out to the one-year. They will conduct two such operation on a weekly basis to reach their $60 bn total over the next four weeks and then release a new schedule for the following four weeks’ of purchases.
