As many commentators have pointed out, the yield curve has developed a sort of humped form in recent months. That has led many to speculate about when the yield curve will invert, foreshadowing a recession. If, as the logic goes, the yield curve is about...
The financial sector has been getting a lot of attention recently with earnings announcements so we thought we'd weigh in on one aspect of financial stock relative performance that is making it difficult for financials to truly lead this market higher: the flattening yield curve....
The spread between 30-year treasury yields and 10-year treasury yields fell to 65 basis points yesterday which is the lowest spread since January 21st, 2009. Since April 2013, the spread has narrowed by 59 basis points. As the long end has flattened, the spread between...
The front-end of the yield curve has flattened in many bond markets this year. The German and French bond markets closed last week with their 10-year bond yield minus 2-year bond yield spread at it’s smallest level since January 2009. The German spread fell to...
The long end of the yield curve has continued to flatten over the last several days. At 77 basis points, the spread between 30 year and 10 year treasury bonds is the narrowest it’s been since 2009 (1st chart below)....
