Badut Saham

Akun belajar investasi

[The Kobeissi Letter @KobeissiLetter]

The 10-year note yield is now down ~35 basis points in just 5 days.

This is the biggest pullback in treasury yields since the October 6th high.

Interestingly, it's not due to a shift in Fed expectations, but rather a shift in US Treasury borrowing.

As the US Treasury ramps up issuances of short-term debt, long-dated bonds are falling.

However, higher for longer Fed policy seems to be setting a floor on this pullback.

Another reminder that the Fed isn't the only force driving rates in this market.

[The Kobeissi Letter @KobeissiLetter]

JUST IN: Money market funds have officially seen over $1 trillion of inflows since the Fed started raising rates.

To be exact, money market funds have seen $1.053 trillion of inflows since March 2022.

This is, by far, the fastest ever move into money market funds in recent history.

The regional banking crisis and return of volatility only amplified this trend.

Why keep your money in the bank when you can make 5% risk-free?