Treasury Curve Flattest in 10 Months Shows Trust in Fed's Yellen
- Fed chair has stressed measured pace in raising interest rates
- December liftoff bets hand 2-year notes worst month since 2009
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The Treasury market is taking Janet Yellen at her word on the path for monetary policy.
The yield premium offered by 10-year notes over two-year securities narrowed to the least in 10 months as the Federal Reserve chair has stressed the potential for liftoff this month, while reiterating that tightening will proceed at a measured pace. A flattening of the so-called yield curve suggests investors see interest rates rising slowly. Yellen is scheduled to speak publicly again Wednesday and Thursday.