2min chapter

The Compound and Friends cover image

We Just Might Pull This Off

The Compound and Friends

CHAPTER

What's the Difference Between the Fed Funds Rate and the Two Year Yield?

The two year yield is seen as a proxy for the Fed funds rate, ostensibly two years down the road. A lot of people look at it as what will the Fed do next? And we've seen in many hiking cycles that the two year yield has foreshadowed Fed rate cuts. When the two year peaks and then falls from that peak, the Fed stops hiking or they tend to cut. What's interesting is when we say roll over, that's the yield we're talking about. People are buying those bonds to make those yields fall. That's how you put in a top in that bond price.

00:00

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode