Despite yesterday's rate cut and significant moves higher in long-dated treasury yields, numerous inversions remain.

Fed Fails to Un-Invert Yield Curve

Huge portions of the yield curve remain inverted, just not as deep as a few weeks ago.

At the long end, the 30-year bond yield rose from 1.938% on August 28 to 2.375 on September 15.

Today, the long bond yield is now back to 2.22%.

Fed Struggling with Rates

The Effective Fed Funds Rate should be in the range of 1.75% to 2.00% following yesterday's cut but it isn't.

Yesterday, the rate should have been in the middle of the range of 2.00% to 2.25% but was at the high end. On Monday it was at 2.30% and thus outside the range.

The Fed has been struggling for day keeping interest rates in its target range.

On September 17, I noted US Overnight Interest Rate Surges to 10%, Fed Injects Emergency $75 Billion.

10% is more than a bit outside the range but the effective FF rate closed at 2.30% following emergency injections. The emergency injections continued for a third day today and will continue for a fourth day tomorrow.

Something is very wrong somewhere.

This material is based upon information that Sitka Pacific Capital Management considers reliable and endeavors to keep current, Sitka Pacific Capital Management does not assure that this material is accurate, current or complete, and it should not be relied upon as such.

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