Playing Chicken

The Credit Strategist Blog

Investors are playing a dangerous game of chicken with the Fed. While the Fed raised interest rates by 75 basis points over the last three months, 2-year Treasuries rallied by 54 basis points, 5-years by 83 basis points, 10-years by 74 basis points and 30-years by 59 basis points. High yield corporate spreads also tightened by 200 basis points over t…