Treasury Rates Plummet in One-Week Chart, 50 Basis Points Tightened by ECB
The Bond Report with CNBC’s Rick Santelli highlights the significant drop in two-year note yields, which fell over 70 basis points in a week.
Fed fund futures also rose by almost 100 basis points in the same period.
The ECB tightened 50 basis points and closed down 40 basis points.
The week was deemed “crazy” and “wild” by analysts.
Jason, a trading floor expert, noted that last week, all but 50 basis points was priced in almost as a certainty at next week’s FOMC meeting.
However, a “large systematic shock” to the banking sector occurred, leading to uncertainty about what the conversation would be at the meeting.
Speculation arose about whether a zero percent rate increase would be implemented, which was priced at 50.
While there are divided opinions, many believe a 50 basis point increase would keep status quo and align with ECB’s recent comments.
With the week being so unpredictable, analysts anticipate a potentially “crazy” upcoming week.