Front-end USD/G10 yield spreads staged a massive rebound since the September jobs report. Last week, the index recorded the largest 5-day increase since the FOMC started tightening rates, oddly, we're heading the other way this time. This goes to show that the markets may have been pricing the Fed's easing too aggressively
Looking at the chart below, we cannot say this is a change of trend, yet. We would need to break above August levels, which coincided with the start of 50bps rate cuts pricing
As of time of writing, the U.S. Treasury two-year yield ticks at 3.941%, around 8bps from its 1-month high of 4.022%, it tracks a +24.1bps rally over the rolling month
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