The seal of the US Federal Reserve Board of Governors at the William McChesney Martin Jr. Federal Reserve building in Washington, DC, US, on Sunday, Jan. 29, 2023.
Those measures should provide “substantial liquidity to banks facing deposit outflows and to improve confidence among depositors,” Goldman’s Jan Hatzius wrote in a note.
Yields Tumble Yields on two-year Treasury notes had surged above 5% last Wednesday, to the highest level since 2007, in the wake of Powell’s signaling that a 50 basis-point rate hike was on the table if upcoming economic reports kept coming in hot ahead of this month’s meeting.
The Fed funds rate may peak at about 5.1% in six months from now, the OIS curve shows, down from a terminal rate of 5.74% priced on Wednesday.
Meantime, economic data are still pending.

Source - Money Control