Treasury Curve Keeps On Flattening (46 BPS On For The 10Y-2Y Slope, Lowest Since Sept ’07)

Keep on Flattening. 

The Treasury yield curve, that is.

The 10Y-2Y slope is now down to 46 basis points … and flattening. The same for the 30Y-2Y slope as The Fed raises their target rate faster than they are decreasing their balance sheet.

21030curve

The Fed’s monetary policy is like Tom Haverford’s “Tommy Fresh” cologne which Pawnee Perfumer Dennis Feinstein said smells like “Chinese food spilled in a birdcage.”

7258530_orig

 

 

One thought on “Treasury Curve Keeps On Flattening (46 BPS On For The 10Y-2Y Slope, Lowest Since Sept ’07)

  1. 2s30s at 67 bps. The most likely part of the curve for inversion is … 5s10s, which is now SIXTEEN bps.

    MSM reporters (which we will hereinafter occasionally refer to as “MSM douches”) and others in the financial pundit sphere who frankly should know better, have been droning on incessantly about how recession cannot be imminent, b/c “the curve is flattening gradually” and “it’s only when it inverts that the economy goes into recession”. So why question is, given the history of this economic indicator, who do you want to believe, the yield curve or your lyin’ eyes?

    Lyin’ Eyes

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s