Economics
The U.S. Yield Curve Is Flattening and Here's Why It Matters
- Spreads between Treasury maturities tumbled to 10-year lows
- Inflation, ECB bond buying, U.S. debt issuance all play a part
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If you haven’t been paying attention to the persistent flattening of the U.S. yield curve, you’re way behind it.
Peter Cecchini, chief market strategist at Cantor Fitzgerald, calls it “the most important thing to have a clear idea about now.” Billionaire fund manager Bill Gross says we’re rapidly approaching a point at which the trend will induce an economic slowdown. Others claim it’s only natural, with the Federal Reserve raising short-term interest rates in the face of stubbornly low inflation.