Good morning wonderful Professionals, I hope EVERYONE is well.

The 10-year note yield is now up 100 basis points since the Fed’s cuts in September 2024.

To put in perspective, the Fed has CUT rates by 100 bps, rates in the market have RISEN by 100 bps.

So why are interest rates rising as the Fed cuts rates?

Short answer, the markets have realized that inflation is back on the rise.

3-month annualized core CPI is nearing 4% (for perspective you...Good morning wonderful Professionals, I hope EVERYONE is well.

The 10-year note yield is now up 100 basis points since the Fed’s cuts in September 2024.

To put in perspective, the Fed has CUT rates by 100 bps, rates in the market have RISEN by 100 bps.

So why are interest rates rising as the Fed cuts rates?

Short answer, the markets have realized that inflation is back on the rise.

3-month annualized core CPI is nearing 4% (for perspective you want to be 2%< ) while PCE, PPI, and CPI inflation are all rising again.

Prior to any tariffs and tax cuts negatively impacting these metrics. Show more