The price of money. Fed path, SOFR curve, auctions, real rates.
The Corridor Narrowed 6 Basis Points. Credit Widened 9.
2s10s is 29.8 basis points on the UST marks, from 35.8 a week ago and the narrowest since 25 September. The 10yr did 11 of the work and the 2yr 5, rate volatility rose 2.2 points, high-yield OAS widened to 3.40% (22 Oct), and reserves fell $59.5bn in the week to 21 October.
The Corridor Narrowed 9 Basis Points. The Front End Did None of the Work.
2s10s closed at 35.0 basis points on the par curve, from 44.0 a week ago. The 10yr fell 15 and the 2yr fell 6, rate volatility did not fall at all, and equities sold 1.9%.
The Corridor Round-Tripped. The Long End Stopped Selling.
2s10s closed at 44.4 basis points, against 44.7 a week ago. The spread widened to 50.7 by 8 October and gave all of it back, and the composite lost its TIGHTENING tag.
The Corridor Widened Again. The Third Line Fired.
2s10s printed 44.7 basis points, from 37.4. The long end widened it a second week, and high yield cleared the 3.00% line this column set 7 days ago.
The Corridor Refilled From the Long End
2s10s printed 37.4 basis points, from 23.8. The 2yr rose rather than fell.
The Corridor Lost Its Floor. The Front End Did It.
2s10s printed 23.8 basis points. The 30yr did not move.
The Corridor Is Compressing. The Front End Owns It.
Both ends of the curve sold off this week. The 2yr sold off twice as hard.
The Corridor Holds. The Path Doesn't.
The front end is doing the talking now, and it is not a supply story.