RATE REVERSAL
12/26/2024 |
If you think it odd that the Fed has cut rates by 100bps over the last three months, yet 10-year Treasury rates are rising, you would be correct. The Fed has cut rates seven times since 1989, including the recent cuts. Four times rates noticeably fell, twice they rose trivially, and this time 10-year Treasury rates are up more than 75bps. Moreover, markets fear 2025 threatens more of the same.