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Rates Spark: Focus on quantitative tightening tweaks from the Fed
The yield on the US 10-year Treasury is hovering around 4%, while the 2-year is sticking close to 3.5%. There's not much difference between the two, so the yield curve is pretty flat. The drop in the 10-year yield has been helped by a narrowing in the swap spread to the secured overnight financing rate (SOFR). It’s shrunk by more than 10 basis points, from the mid-50s to the low 40s. This shift started just before the release of the 2025 fiscal deficit, which came in slightly lower than the 2024 figure. It’s still high, but a bit lower -- a small positive. One reason for the improvement is higher tariff revenue, ... (full story)
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The Federal Reserve is poised to end its latest program of quantitative tightening, bringing the curtain down on the massive intervention in financial markets it launched in March 2020 at the start of the COVID-19 crisis. The Fed hopes that the markets can stand on their own and that the central bank can return to stimulating and cooling the economy using ...
The easy part for the Federal Reserve on Wednesday will be announcing an interest rate cut when it wraps up its two-day policy meeting. The hard part will be taking care of other details that are presenting substantial challenges to policymaking these days. Markets are assigning a nearly 100% probability that the Federal Open Market Committee will approve a ...
CNBC's Steve Liesman reports on the latest Federal Reserve survey.
