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Time for Another Convexity Crisis?

Photo Credit : Loren Javier || Maybe Convexity crises are like Heffalumps. They only come if you whistle, and only if the time of year is right… Everyone remember 1994, when mortgage convexity forced the Fed to raise the Fed Funds rate? Or 2004, when the same thing happened in a more minor way? Well, at present, long Treasury rates are rising. I think it is because the economy is booming, and we don’t need more “stimulus.” Note...