- Current US2YY = 0.49%; Current US10YY = 2.57%; Curve = +208
- Fed Funds target 0-0.25%.
- How low can US2YY go? My guess = Not too much below 0.35% (barring flight to quality event).
- From chart here, 2s/10s looks like can flatten to +140. Assuming US2YY @ 0.35%, that puts US10YY @ 1.75%.
- Clearly then, US10YY <2.0% is not beyond realms of fantasy.
- US10YY DT objective of 2.20% is clearly attainable with ease and not unrealistic.
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