Reported 2 months ago
On Monday, U.S. interest rate swap spreads over Treasuries tightened or turned negative as investors hedged for lower interest rates amid a sharp sell-off in stocks. Analysts noted a correlation between declining equities and the movement of swap spreads, indicating concern about recession risks prompted by disappointing economic data. The spread for 10-year swaps fell to -45.75 basis points, reflecting increasing hedging activity in the swaps market.
Source: YAHOO