Fed Funds rate has dropped by 0.12% to -0.06%.
Spread between TIPS and T-notes are as follows:
TED spread is 191pts.
If we take the actual FED funds rate as reference, then the 5-year and 10-year AAA banking and finance rate risk premium, together with mortgage spread rate, has not decreased.
In other words, FED is supplying money for banks to polish their balance sheets but the money cannot leave the banking system. Alienating the yield rate of treasuries cannot cover the actual lack of good investment projects, except the ones that are not related to daily demand and supplies.