For most of the past 12 months, short-term US interest rates have exceeded the 10-year US treasury note yield by over one full percentage point, with 1-month T-bills currently yielding over 5.3%, versus around 4.3% for 10-year fixed rate notes. This “inverted yield curve” implies the market expects short-term rates to decline, this signal seemed “early” for most of the past year, and sustained high US rates are one likely reason the US dollar remains relatively strong against many other major currencies.
In this educational webinar, 26-year market veteran Tariq Dennison explains what drives interest rates, bond prices and yields, and currency exchange rates up and down, and possible scenarios for where bond and FX markets might go next. Tariq then explains how he uses CME’s new micro ultra treasury note, micro ultra bond, and currency futures to capture these possible moves.
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