The FOMC Successfully Normalizes the U.S. Yield Curve

Subscriber Updates July 14th 2025

Ok we want to take a quick look at the U.S. Treasury yields, in particular we want to point out how the 2 Year Note has not moved in over a year:

We would expect the Bond market to push the 2 Year yields down below 3.60% to indicate an FOMC rate cut is near. We are not at that point yet but its highlighted in our green support dashed line above.

We also have further evidence that the FOMC has done a great job in anchoring the short term rates and re-normalizing the overall shape of the yield curve depicted in the white line below:

We also continue to see Bill Pulte push for the removal of Jerome Powell, no doubt talking up his own margin compression due to rates being kept elevated. We actually hate using that term because we view rates as exactly where they should be. In fact the FOMC has done a great job in returning the overall trend in inflation back down and now leveling off:

The one thing that is proving more problematic for the Federal Reserve is their
”deferred asset” or what is more realistically called their marked to market loss which now sits at a massive -$235.1 Billion:

Ok guys that is it we have subscriber only data up next. We urge you to become a full subscriber and truly break through that barrier of understanding in regards to our global financial system and perhaps implement some of our trading trackers into your own investment profiles! If you are sick of stagnating, sick of losing then join the ranks of MTR Subscribers!

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