An immediate lesson — should have been more reminder — that surfaced after the Federal Reserve cut the federal funds rate range by 50 basis points was that not all rates move in tandem.

One might expect a short end of the Treasurys, like the 3-month yield, to be sensitive to the federal funds rate, and it was. First in anticipation, falling from 5.19% at the start of September, sliding to 4.95% the day before the announced cut that everyone expected would happen, and then an 11-basis-point drop the close of the 18th. And the secure overnight financing rate, or SOFR, went from 5.38% on September 17th to 4.82% on the 19th.

But the yield on 10-year Treasurys was different. September 3, 2024, started at 3.84%. The day before the announcement, it was 3.65%. After, it jumped to 3.70% and then ended Monday, the 23rd, at 3.75%.