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Do Larger Deficits + A Smaller Balance Sheet = Higher Rates?

Last Week: Interest rates and equities both lurched higher amid continued evidence of synchronized global growth and solid corporate earnings. Yields on US 10-year Treasury notes rose to their highest level since 2014, trading to a weekly high of 2.66% last Friday morning. 1-month LIBOR followed the 10-year higher, trading to 1.5613% from 1.5561% the […]

What the Fed’s Great Unwind Means for Rates

The Beginning of the End of QE (“Quantitative Easing”). Its been well advertised the Fed will begin unwinding its $4.5 trillion-dollar balance sheet this month, initially by reinvesting a gradually smaller amount of Treasuries and allowing Mortgage-backed securities to mature without replacement in its massive portfolio. As such, October 2017 will go down in history […]

The Great Fed Unwind Begins

Last Week: Interest rates rose markedly and equities nudged slightly higher as tensions continued to escalate between North Korea and the rest of the world. The yield on the US 10-year Treasury note jumped to 2.20% from 2.06% the week prior as recovery from Hurricanes Harvey and IRMA continued. 1-month LIBOR rose slightly to 1.2372% […]