This seems to be the topic du jour these days. Might as well keep posting on it.
The thing I watch is the Fed Funds rate as opposed to bonds. I'm all out of practice since I stopped trading a long time ago. I went broke when my health went to hell.
The Fed Funds rate is set at 4.25 to 4.5. The 30 year bond yield may have dropped below it, which means an inverted yield curve. President Trump is calling for rate cuts. Yes, I would think so. Just trying to confirm this inverted yield curve thing.
Here's Leo AI about the Fed Funds rate:
The Fed Funds rate is the interest rate at which banks and other depository institutions lend and borrow money from each other overnight. It is a crucial indicator of the overall direction of monetary policy and has a significant impact on the economy.
**Key points about the Fed Funds rate:**
* It is set by the Federal Open Market Committee (FOMC), the policymaking body of the Federal Reserve System.
* The FOMC sets a target range for the Fed Funds rate, which is currently between 4-1/4 to 4-1/2 percent.
* The Fed Funds rate influences the overall level of interest rates in the economy and has a significant impact on borrowing costs, economic growth, and inflation.
* It is a key indicator of the Federal Reserve's monetary policy stance and is widely followed by economists, investors, and policymakers.
The ^TYX index indicates a rate slightly above it. 4.48% This is a moving target as it was a quote.
All the other bond yields are lower, so it is mostly inverted. One possible good thing about this current kerfuffle is that the massive 36 trillion dollar public debt needs about 9 trillion in refinancing. We'd want to do this at a lower interest rate, thank you very much. Otherwise, the interest rates will be baked in at unacceptably high rates, which will tacked on to the Federal debt. Currently, the debt service is much, much too high.
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