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Market Data Network

THE USD TERM PREMIUM – WHY SO NEGATIVE?

Post Date: 04 January 2024

The FOMC minutes referenced a future plan for slowing QT, mentioned a peak in rates and talked of a slowdown and inflation successes. Nothing startling, but also nothing to negate 2024 rate cut hopes. There was also mention of a term premium collapse of late. Rate cut hopes can shield this as an issue. But it still remains one. Only saying – the Fed brought it up


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