A ‘fair-value’ estimate of the US 10-year Treasury yield was steady in April while the market level for the benchmark rate continued to rise well above the theoretical level. But trading activity this month suggests the trend may be shifting. Yesterday’s sharp fall in the 10-year yield (May 15) substantially narrowed the spread, which implies that the market’s premium over fair value had become extreme.
Daily Archives: May 16, 2024
Macro Briefing: 16 May 2024
* US stocks rally to record high after encouraging inflation data
* Americans unexpectedly paused spending in April vs. March
* US homebuilder sentiment in May weakens for first time in six months
* NY Manufacturing Index indicates slightly faster contraction in May
* US Core Consumer Inflation falls to 3-year low in April:
