TBT - Yield Curve - Understanding All The (Conflicting?) Messages: Part II
In part I of this series, we discussed the very short end of the yield curve, actually starting with Fed Funds futures, to understand the expectations in the market today as it pertains to Federal Reserve policy. If you have not read part I, you can do so by clicking here.
After analyzing the Fed Funds futures curve as well as short-term interest rates, the market expectations in the short term were clearly identified.
About one week ago, the market was expecting the Federal