IRX, the 13-Week Treasury Bill yield has spiked above its relevant highs of 0.05 after the recent FOMC announcement, which hinted of a potential review of the Fed's Target Range for the Federal Funds Rate (now at 0-0.25%)
This spike in prices indicates that at the moment the expectations for the rate range hike are present, as IRX is closely correlated to Federal Funds market (see Daily Effective Federal Funds rate at NY Fed website)
Thus if IRX doesn't roll back below 0.05, until l the next Fed meeting, the rate range hike could be in the cards!
This spike in prices indicates that at the moment the expectations for the rate range hike are present, as IRX is closely correlated to Federal Funds market (see Daily Effective Federal Funds rate at NY Fed website)
Thus if IRX doesn't roll back below 0.05, until l the next Fed meeting, the rate range hike could be in the cards!