TSX:AX.PR.E - Post by User
Post by
Torontojayon Nov 07, 2024 1:32pm
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Post# 36301471
10 year treasury rate
10 year treasury rate According to the CME Fed watch tool, the median Fed Funds rate by year end 2025 is 3.75%
If we apply a 75 bps term premium on Fed Funds, then the 10 year will trade in the range 4.5% by the end of 2025. This is what todays pricing tells us about the end of next year. The 10 year treasury is trading at 4.352% as of today.
The market believes the neutral rate is higher than what Fed officials believe it should be.