Plummeting stocks make capital flow into bonds. I'ts simply flight to quality. People buy bonds so their prices go up. When the price of bond goes up, its yield goes down. If the spot yield goes down, so does the forward yield (as per table above). But don't confuse a price action caused by flight to quality with Fed decisions. Fed will take into account many more variables when deciding what to do.
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u/mzungu75 23h ago
Plummeting stocks make capital flow into bonds. I'ts simply flight to quality. People buy bonds so their prices go up. When the price of bond goes up, its yield goes down. If the spot yield goes down, so does the forward yield (as per table above). But don't confuse a price action caused by flight to quality with Fed decisions. Fed will take into account many more variables when deciding what to do.