Treasury Curve Flattening Is Back
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The great yield curve steepening of 2018 barely lasted a day.
After the spread between 2- and 10-year Treasury yields suffered its biggest daily widening since 2016 on Jan. 9, it’s gone on a flattening binge. Meanwhile, the curve from 5 to 30 years touched a 10-year low of 47.2 basis points Tuesday, breaking the mark of 50 basis points that BMO Capital Markets strategists see as a “battleground” on the way to their call for an inverted curve in 2018.