What do you think about Treasury market and curve steepening?
Scarlet Fu
Jeff Sherman
Front end better, back end closer to cycle highs; cautious on long bond; still like curve steepening trade.
Why hasn't $7T in money markets moved out despite lower rates?
Scarlet Fu
Jeff Sherman
Real yield in T-bills above inflation preserves purchasing power; investors skittish to step out due to volatility.
Can we rewind clock to 2008 on Fed balance sheet?
Scarlet Fu
Jeff Sherman
Bond market would sell off; need to absorb $7-8T additional Treasury supply; without Fed balance sheet, need to find buyers, leading to higher rates.
What can Kevin Warsh do at Fed on balance sheet?
Scarlet Fu
Jeff Sherman
Difficult as one man; needs consensus; historically hawkish but now talking rate cuts due to administration pressure.