Upcoming Key Economic Data Release:
The next new jobs report is January 10.
The next CPI release is January 15.
The next Fed meeting is January 29.
For the past week, 10 Year Treasury rates decreased 1bp. The net change in 2 weeks up 17bp.
The red line is current rates while the green line is one week ago. Short-term decreased while long-term increased. For terms 1+ years, the Yield Curve shows a positive shape. As the Fed decreases its Fed funds rate, short-term rates will decrease and the yield curve will return to a normal positive slope.
We are getting a positive sloped yield curve through a combination of Fed cutting short term and the market commanding higher longer-term rates.
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