US 30Y Yield Tumbles Back Below 4.00%, Financial Conditions Loosest Since May 2022

Despite resilience in US data, 30Y Yields have plunged back below the 4.00% Maginot Line this morning…

Source: Bloomberg

The last few weeks have seen US macro data reverse its recent trend of disappointment…

Source: Bloomberg

The long-end of the curve is outperforming…

Source: Bloomberg

But, ‘do not fight The Fed’ seems to be the narrative and expectations for a March rate-cut are rising once again…

Source: Bloomberg

And the market is pricing in over 160bps of cuts for next year…

Source: Bloomberg

Financial Conditions are now at the same level of looseness as of May 2022…

Source: Bloomberg

That is 300bps of Fed rate-hikes ago!!! Is that really what The Fed wanted?