EPISODE · May 27, 2026 · 6 MIN
How the Fed Funds Rate Steers Bond Yields
from The Bond Market Podcast with Fexingo: Treasuries, Yields, and Fixed Income for Beginners · host Fexingo
Lucas and Luna explore how the Federal Reserve's benchmark interest rate—the Fed funds rate—acts as the anchor for the entire bond market. Using live data from late May 2026, they show how the 3-month yield sits just 4 basis points below the interest on reserve balances, the 2-year yield has risen sharply to 4.13%, and the 10-year yield sits at 4.56%. They explain the transmission mechanism from Fed policy to short-term Treasuries, then to longer maturities, and discuss what the current flatness at the front end signals about rate cut expectations. A clear, example-driven breakdown of the plumbing behind yield movements. #FederalReserve #FedFundsRate #TreasuryYields #MonetaryPolicy #InterestRates #BondMarket #Economics #FOMC #YieldCurve #CentralBanking #ShortTermRates #ThreeMonthYield #TwoYearYield #TenYearYield #IOER #RateCuts #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo
What this episode covers
Lucas and Luna explore how the Federal Reserve's benchmark interest rate—the Fed funds rate—acts as the anchor for the entire bond market. Using live data from late May 2026, they show how the 3-month yield sits just 4 basis points below the interest on reserve balances, the 2-year yield has risen sharply to 4.13%, and the 10-year yield sits at 4.56%. They explain the transmission mechanism from Fed policy to short-term Treasuries, then to longer maturities, and discuss what the current flatness at the front end signals about rate cut expectations. A clear, example-driven breakdown of the plumbing behind yield movements. #FederalReserve #FedFundsRate #TreasuryYields #MonetaryPolicy #InterestRates #BondMarket #Economics #FOMC #YieldCurve #CentralBanking #ShortTermRates #ThreeMonthYield #TwoYearYield #TenYearYield #IOER #RateCuts #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo
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How the Fed Funds Rate Steers Bond Yields
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