To Survive Disasters, You Need Smiles (guest: Steve Hou)
The Market Huddle
00:00
How Does the Fed Funds Rate Affect Treasury Yields?
I want to understand how a rise in Fed funds rate affects the treasury yields. At all times, there is an expected path already built in to the front end of the yield curve. So, you could have a situation where the three month treasury bill actually rises in price because the Fed only raises 25 basis points. And it gets a little more complicated as you get longer and longer.
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