Quesitons about Yield vs Fed Fund Rate?

General discussions about futures.
Post Reply
oem7110
Roundtable Knight
Roundtable Knight
Posts: 390
Joined: Wed Jul 12, 2006 9:33 pm

Quesitons about Yield vs Fed Fund Rate?

Post by oem7110 »

Most people compares Yield / Fed Fund Rate together, I don't understand on how to interpret this ratio (up / down),

Does anyone have any suggestions on what it implies on this ratio?

Thanks in advance for any suggestions :>
stamo
Roundtable Knight
Roundtable Knight
Posts: 522
Joined: Tue Mar 13, 2007 5:27 pm

Post by stamo »

Some think that Twos lead Fed Funds. So they watch the Twos, which "price" throughout the day, to anticipate what's going to come out of the next Fed meeting.

You could look at the ratio or the spread or just plot both like this graph.

BTW, FREDis free and the available data sets are "wide & deep". Create a free account and you can save your favorite studies.
Attachments
fredgraph.png
fredgraph.png (20.72 KiB) Viewed 4057 times
Post Reply