Fidelity Says Twist in Treasury Yield Curve Has Further to Run
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Investor demand for longer-maturity Treasuries means they’re willing to accept a smaller yield premium to get the securities. Fidelity Investments says the trend has further to go.
The extra yield 10-year notes offer over two-year securities shrank to 147 basis points Tuesday, the narrowest spread in three months. The figure is less than the average of almost 2 percentage points for the past five years. A decline is known as a flattening of the yield curve.