Today’s 3-year Treasury auction brought a high yield of 2.280%, the highest since 2007.
Liquidity moves markets!Follow the money. Find the profits!
As The Fed keeps to their balance sheet unwinding (via letting notes and bonds mature), the 3-year note high yield keeps rising (rapidly).
Now, the KC Fed’s Esther George (a non-voting FOMC member) wants to speed-up The Fed’s unwind of its balance sheet.
Federal Reserve Bank of Kansas City President Esther George warned Thursday the languid pace of the central bank’s balance sheet shrinkage effort may be causing negative effects on financial markets, in remarks that again called for continued rate increases.
“Asset prices may have become distorted relative to the economic fundamentals” due to the now completed central bank bond buying effort that took place during and after the financial crisis, Ms. George said in the text of a speech to be presented in Lincoln, Neb.
Ya think, Esther?
Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. I may receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.