Fed Raises Target Rate To 2%, 10Y-2Y Treasury Slope Flattens To Below 40 BPS (Flattest Since 2007)

As expected, The Federal Reserve raised their target rate (upper bound) to 2%.

fed061318.png

However, the interest on excess reserves is now 1.95% (not 1.75% according to Bloomberg).

ioerfedccc

At the same time, the US Treasury 10Y-2Y slope flattened to below 40 basis points, the lowest since 2007.

yc10240.png

Now for the Fed Dots Plot.

dotsplot061318.png

dots.jpg

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s