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Quesitons about Yield vs Fed Fund Rate?

Posted: Sun Sep 08, 2013 12:58 am
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 :>

Posted: Sun Sep 08, 2013 12:21 pm
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.