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Anonymous ID: 5cee8f Feb. 28, 2020, 5:49 a.m. No.8273618   🗄️.is đź”—kun

Treasury rally sees no end as 10-year note yield dips below 1.20% mark

 

U.S. Treasury yields fell for a seventh straight session on Friday, extending a relentless slide that has taken government bond yields to new record lows amid worries that the COVID-19 epidemic will curtail global economic activity. In a sign of growing expectations for Federal Reserve interest rate cuts this year, the 2-year note rate TMUBMUSD02Y, -15.13% tumbled 12.7 basis points to 0.976%. The short-dated maturity is highly sensitive to the prospects for interest-rate policy.As panic sweeps across bond markets, traders are now urging the Federal Reserve to ease monetary policy even as economists say lower interest rates are ill-suited to soothing the supply shock resulting from the coronavirus. The fed fund futures market is now pricing in around 80 basis points worth of cuts by the end of the year.

https://www.marketwatch.com/story/treasury-rally-sees-no-end-as-10-year-note-yield-dips-below-120-mark-2020-02-28

https://www.marketwatch.com/investing/bond/tmubmusd10y?countrycode=bx&mod=MW_story_quote

https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html

Anonymous ID: 5cee8f Feb. 28, 2020, 5:56 a.m. No.8273655   🗄️.is đź”—kun   >>4134

Libor Plunges Most Since 2008 After Virus Spurs Bets on Fed Cuts

 

One of the world’s most important borrowing benchmarks on Friday staged its biggest one-day drop in more than a decade.

 

The three-month London interbank offered rate for dollars – a benchmark for trillions of dollars in financial products globally – sank 11.8 basis points to 1.46275%. That’s the biggest one-day slide since December 2008 at the height of the global financial crisis. The move Friday reflects a market that’s pricing a more aggressive pace of monetary-policy easing from the U.S. central bank to cope with the economic impact of the coronavirus.Futures traders are pricing in 86 basis points of Federal Reserve interest-rate cuts in 2020. That’s the equivalent of more than three standard quarter point cuts, and the first of these is almost fully priced in for as soon as March. A week ago, the market was pricing in just 48 basis points by year-end, but traders have amped up bets drastically this week as virus concerns have battered stocks around the world and sent investors rushing into haven assets.

https://www.bloomberg.com//news/articles/2020-02-28/libor-plunges-most-since-2008-after-virus-spurs-bets-on-fed-cuts