The Implications of the Fed's Upgrade Scenario

Fed never gave a upgrade scenario to the banking system in the US. Banks will be busy fixing their balance sheet, and they'll probably be gradually reducing some of the balance sheet by selling off assets. So we will see more selling of duration that provide the banking system over time,. That's going to keep pushing the yields higher in the long end of the curve. Eventually we might see this whole inversion of the curve suddenly.