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Chart Of The Day

PANCAKING THE CURVE…

If you’re trying to visualize today’s move from the Fed then look no further than the Fed Funds Futures curve.  Just 24 hours ago the curve was a full 25 bps higher than today.  This move was the equivalent of a rate cut.  Unfortunately, rate cuts stopped working about 2 years ago….

Nonetheless, the change in the curve shows just how much expectations have changed in 24 hours.   The Fed has essentially pancaked the yield curve:

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