Wall Street Ponders If Bearish Yield-Curve Steepening Has Legs
- Weak August jobs data tamped down concern of hawkish Fed risk
- Gap between 5- and 30-year yield expands further on Tuesday
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Many on Wall Street are pondering just how long the recent bout of bearish Treasury yield curve steepening will last.
Friday’s weaker-than-expected jobs creation in August sent yields higher, somewhat counterintuitive given that the data seemed to imply risk of weakening growth. Some steepening makes sense amid robust wages and apparently dimmed odds for an imminent start of Federal Reserve tapering, though it’s unclear whether that force will be enough to reverse the flattening that had been underfoot.