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Ditto. It came up on the Off-Topic board yesterday in a post by @Baseball_Fan - but I was the only one to make any remarks. - LINKI am surprised this hasn’t gotten more discussion on the boards today.
No argument here. Interesting guest just now on Bloomberg tv. From Quill Intelligence, out of Dallas. Danielle DeMartino Booth. She says, "YES! Don't fight the Fed, but that's exactly what the markets are doing." She sounds like she knows a thing or two. Nothing about what she said on camera felt "canned" to me.Stinky poopy day, today.
We're just pricing in the 50 basis point FED hit next week. My crystal ball doesn't see anything good happening for a while. Don't fight the FED. Isn't that the motto?
We're just pricing in the 50 basis point FED hit next week. My crystal ball doesn't see anything good happening for a while. Don't fight the FED. Isn't that the motto?Stinky poopy day, today.
So far as I can tell it, it in fact is.
The flattening in money market funds is normal because they are limited by the Fed funds rate. There was a 25 basis point increase in Fed fund on February 1. At that time your fund was yielding 4.27. So you would expect a rise close to 25 basis points after the Fed funds increase and that is pretty much what we have had - a 21 basis point rise to 4.48. It could still rise to around 4.49 to 4.50 before the next Fed funds rate increase in two weeks. Then, like before there will be a rapid one week to 10 day increase of close to 25 points or 50 points in your money market depending on which of those two rates increases the Fed decides upon.If you are a baseball fan you know the term small ball. If not, it means trying to score runs without hitting a home run. I have been tracking money market and brokered CD’s at Schwab. In the last month the steady rise of MM fund rates has ground to a halt while brokered CD rates have moved up,,,even moving out from the shortest terms.
MM SWVXX. FEB 8. 4.41%. Today 4.48%
12 month CD. 4.75%. 5.25%
24 month CD. 4.55%. 5.25%
36 month CD. 4.25%. 5.00%
My question for those with greater insights than I. Does this relative increase in intermediate term and a flattening of the shortest term(Money Market) rates have any meaning going forward?
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