How Low Can All These Curves Go?

Week September 22-26

Markets are puzzling over a growing divergence. Short-term Treasury bill yields continue to fall under relentless demand, while longer-dated notes like the 10-year have edged only modestly higher, climbing from 4.01% earlier this month to just above 4.15%. Bill auctions remain heavily oversubscribed, their clearing yields pushed lower and lower as inves…