Twitter- verse all excited that the Bloomberg WIRP function is showing the Markets pricing in a possible Negative Fed Funds rate at the turn of the Year.Red circle indicates the negative rates
- U.S. 2 year yields new all time lows at .14%
- U.S. 5 year real rates go more negative,indicating that Fed policy may still be too tight??? Gold moves higher when real rate move lower.
Stocks Moving higher ,Nasdaq turns positive for year but yet a bid in treasuries ,Hmm.. that is why some thinking “someone knows something”
From IFR news”Even so, the bond market is trading far stronger based on anything that meets the eye, especially considering the risk-on rally. Often this suggests that some in the market are privy to something non-public. Our guess, going off the strength of the curve out to the 5-year is that the Fed is about to announce something soon (YCC, QE) where they will be back in supporting the market