The gap between yields on two- and 10-year Treasury notes, a measure of the yield curve, fell to about 75.5 basis points Friday, the flattest since November 2007, data compiled by Bloomberg show. The narrowing accelerated after the U.K. vote last month to exit the European Union dimmed world economic growth prospects and pushed more global yields below zero, boosting the appeal of Treasuries. Add to that the Federal Reserve’s tightening bias, the trend is set to continue, according to John Herrmann at MUFG Securities Americas Inc.
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