October 2020 Yield Curve Update

Published Sun, 15 Nov 2020 09:01:45 -0500 on Seeking Alpha

Seeking AlphaToday's Market | Market OutlookOctober 2020 Yield Curve UpdateNov. 15, 2020 9:01 AM ET|| Includes: AWTM, BBSA, BIL, BILS, BTYS, CLTL, DFVL, DFVS, DLBL-OLD, DTUL, DTUS, DTYL, DTYS, EDV, EGF, FIBR, FLAT, FLGV, GBIL, GOVT, GSY, IEF, IEI, IVOL, OPER, PLW, PST, RINF, SCHO, SCHQ, SCHR, SGOV, SHV, SHY, SPTI, SPTL, SPTS, STPP, TAPR, TBF, TBJL, TBT, TBX, TFJL, TLH, TLT, TMF, TMV, TTT, TYD, TYO, UBT, UDN, USDU, UST, USTB, UUP, VGIT, VGLT, VGSH, VUSTX, ZROZby: Kevin A. ErdmannKevin A. Erdmann Deep Value, Contrarian, portfolio strategySummaryThe yield curve has taken a strong bullish move as a result of the election and the COVID-19 vaccine progress.
The long end of the Eurodollar curve is nearly back to the pre-COVID level.
The Fed probably still has room for more traditional accommodation.

The yield curve has taken a strong bullish move as a result of the election and the COVID-19 vaccine progress. The long end of the Eurodollar curve is nearly back to the pre-COVID level.
The date of the first rate hike remains in mid-2021, but the escape velocity has increased significantly. Forward inflation breakevens remain level at about 1.6%, which suggests that the recent improvement has been due to real shocks. The Fed probably still has room for more traditional accommodation.

Original Post
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
... Read more