Market Risk - Term structure

[chnggary]

Hi David,

I have a question on the following questions


Question:

Following is the present market yield curve for generic on the run US Treasuries:
Fed Funds: 1.88%
3-month T-bill: 1.75%
UST 10 yr: 3.59%
UST 30 yr: 4.70%

The market is pricing in:
a) an imminent easing by the Federal Reserve
b) an intermediate term easing by the Federal Reserve
c) an imminent tightening by the Federal Reserve
d) an intermediate term tightening by the Federal Reserve

May I know why the answer is a). I can't figure out what is all about. Many thanks in advance.

B. Regards,
chnggary

 

[chnggary]

Hi David,

May I ask for your help for the above question please ? Million thanks.

chnggary