Flat Yield Curve Faces a Rocky Road That Offers Little Direction
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The U.S. yield curve had its big flattening moment. Now expect some turbulence ahead, with little change in altitude.
At least two quantitative techniques suggest a shift is under way in fixed-income markets. The Treasury yield curve from five to 30 years is entering a period of increased volatility, but less clear directional moves. That means curve bets will have less potential to generate excess return.