Treasury Curve Shows How the Fed Is Hurting Reflation Trades
- Spread between 5-, 30-year yields is at narrowest this year
- Inflation markets begin to embrace ‘transitory’ message
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The dramatic flattening of the Treasury yield curve Thursday shows how the reflation trade -- one of the hottest bets in global markets -- is starting to unravel.
A day after the Federal Reserve acknowledged that it may hike interest rates more than once in 2023, 30-year bond yields dropped as much as 16 basis points to 2.05% in the most significant move since February.