Quick Take
- The market is reversing the assumed fed pause and the aggressive subsequent rate cuts for the second half of 2023.
- The three and six-month T-Bill is now above 5% for the first time in over 15 years.
- On top of that, the 3-month/ 10-year U.S. treasury spread is the deepest inversion for over 30 years. The market is signaling huge policy errors by the Fed.
- Investors are rushing to money market funds and the short end of the yield curve to get 5% on their cash — which will put further pressure on banks to raise deposits.
- But the biggest news is Apple is offering 4.15% off US savings accounts. Ordinary people feel safe using Apple and have a recognized and trusted brand. There are also no fees, minimum deposits, and a buy now, pay later program.
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