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Yield curve flattens on prospect of June rate hike

Published 05/24/2017, 04:18 PM
Updated 05/24/2017, 04:18 PM
© Reuters.  Yield curve flattens on prospect of June rate hike
  • The minutes from the FOMC's May 2-3 meeting left little doubt of the central bank's intention to hike again at the June get-together.
  • July short-term interest rate futures continue to price in more than an 80% chance of a move; futures are discounting only about 60% odds of a rate hike beyond June.
  • The 10-year Treasury yield fell nearly four basis points following the release of the minutes, now yielding close to the year's low at 2.246%. TLT +0.55%, TBT -1%
  • Banks are fans of higher rates, but not necessarily of a flatter curve - they underperformed the market today, with KRE -0.6% and KBE -0.35% vs. the S&P 500's 0.25% advance. The broader financial sector (NYSEARCA:XLF) was flat on the session.
  • Yield curve ETFs: STPP, FLAT
  • Now read: Correction Continues, Should You Buy The Dip?


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