I dont think it is that problematic, but it is telling if there different players in different parts of the yield curve. It is not just the shape of the u. S. Curve. It is the differentials in other curves as well. Thats a testament to the influence of other Central Banks. The rest of the world is still printing money. Ecb, bank of japan. They promises they will do that until september of next year. It is hurting duration and credit risks. They ultimately end up in the u. S. , and that is a very important driver. One of the weirdest things as we are doing it against the backdrop of the fed and potential tax cuts next year. You got hundreds of billions of extra supply coming into the u. S. Market next year. My guess it will be much more difficult for the curb to continue to flatten in the next year. If i dont get some pickup in inflation and the fed stays, two years it will go higher in the curb will go flat. Jonathan joining me in new york is vishwanath tirupattur, lisa hornby, and com
End of the curve. I dont think it is that problematic, but it is telling us there are different players in different parts of the yield curve. It is not just the shape of the u. S. Curve. It is the differentials with other curves as well. Thats a testament to the influence of other Central Banks besides the fed. The rest of the world is still printing money. Ecb, bank of japan. The ecb promised they will do that until september of next year. It is hurting duration and credit risks. Those two things ultimately end up in the u. S. , and that is a very important driver. One of the weirdest things as about the curve flattening is we are doing it against the backdrop of the fed and potential tax cuts next year. Youve got of billions of extra hundreds supply coming into the u. S. Treasury market next year. My guess is it will be much more difficult for the curve to flip continue to flatten in the next year. If i dont get some pickup in inflation and the fed stays, two years it will go higher
I dont think it is that problematic, but it is telling us that there are different players in different parts of the yield curve. It is not just the shape of the u. S. Curve. It is the differentials in other curves as well. That, to some degree, is a testament to the influence of other Central Banks beside the fed. The rest of the world is still printing money. Ecb, bank of japan. The ecb has promised us they will do that until september of next year. All of this money is hurting duration and credit risks. They ultimately end up in the u. S. , and that is a very important driver. One of the weirdest things as about the curve flattening here is we are doing it against the backdrop of the fed and potential tax cuts next year. You got hundreds of billions of extra supply coming into the u. S. Treasury market next year. My guess it will be much more difficult for the curve to continue to flatten in the next year. Pickupe dont get some in inflation and the fed stays on its hiking path, in t
Markets operating on the long end of the curve. I dont think it is that problematic, but it is telling us that there are different players in different parts of the yield curve. It is not just the shape of the u. S. Curve. It is the differentials in other curves as well. That, to some degree, is a testament to the influence of other Central Banks beside the fed. The rest of the world is still printing money. Ecb, bank of japan. Still printing enormous amounts. All that money is hurting duration and credit risks. They ultimately end up in the u. S. , and that is a very important driver. One of the weirdest things about the curve flattening here is we are doing it against the that drop of the fed Balance Sheet and potential tax cuts next year. Youve got hundreds of billions of extra supply coming into the u. S. Treasury market next year. My guess it will be much more difficult for the curve to continue to flatten in the next year. If we dont get some pickup in inflation and the fed stays
Markets operating on the long end of the curve. I dont think it is that problematic, but it is telling s that there are different players in different parts of the yield curve. It is not just the shape of the u. S. Curve. It is the differentials in other curves as well. That, to some degree, is a testament to the influence of other Central Banks beside the fed. The rest of the world is still printing money. Ecb, bank of japan. The ecb has promised us they will do that until september of next year. All of this money is hurting duration and credit risks. They ultimately end up in the u. S. , and that is a very important driver. One of the weirdest things as about the curve flattening here is we are doing it against the backdrop of the fed and potential tax cuts next year. You got hundreds of billions of extra supply coming into the u. S. Treasury market next year. My guess it will be much more difficult for the curve to continue to flatten in the next year. If we dont get some pickup in