Fixed Income Update
Treasuries have caught a bid today after a spike in Initial Jobless Claims cemented expectations of yet another 50bp rate cut from the Fed. Alongside the rally in equities, the 30yr, currently yielding 4.357%, is up almost a full handle, while the 10yr is yielding 3.641% and the 5yr is yielding 2.814%.
Money has flowed into the short end as well, with the 4wk bill yield shedding 28bps to yield 1.49%, the 3-month down 23bps to 1.9%, and the 6-month down 16bps to yield 2.06%. Fed Fund futures have fully priced in another 50bp easing at the Fed’s March 18 meeting.