2s/5s invert
Time for another rate cut.
US 2-year yields just fell back below 5-year yields and at -1.3 bps that's the most inverted since early November.
2s/10s are at +15.9 basis points.
The one to watch is the 3-month versus the 10-year because that's what the Fed watches most closely. We're just about at the limit of how low 3m yields can go because Fed funds are at 1.50%-1.75%. That measure is down 9 basis points today to just +6.1 bps.
I could easily see 10s falling another 6 bps. The Fed is suddenly a lot more interesting on Wednesday.
