- U.S. banks are feasting on Treasuries in the latest sign investors expect policy makers to delay raising interest rates.
- Commercial lenders boosted their holdings to a record $2.15T at the end of last month, translating to a stake almost double the amount owned by China, the biggest U.S. foreign creditor.
- According to futures data, the probability the Fed will increase rates in December has now dropped to 30% from 70% odds at the beginning of August.
- The ten-year yield, which dipped below 2% earlier this week, is flat at 2.01%.
- ETFs: TBT, TLT, TMV, SHY, TBF, EDV, TMF, TTT, ZROZ, TLH, SBND, VGLT, BIL, UBT, DLBS, TLO, PLW, VGSH, STPP, SHV, GOVT, FLAT, SCHO, FTT, TENZ, LBND, EGF, DTUS, DLBL, TYBS, DTUL, SST, TUZ, VUSTX, TAPR, TFLO, USFR