US Treasury Curve Flattens BELOW 30 BPS (2Y Yield Rises While 10Y Yield Falls)

Happy July 5th!

The US Treasury yield curve has just flattened to BELOW 30 bps.

102BREAKS30.png

Yes, the 10-year Treasury note yield fell slightly while the 2-year Treasury note yield rose … again.

ycdet

Notice that the zero coupon 2 year volatility has been declining as The Fed gradually raises rates.

2yvol07

And then we have Japan bailing on its Treasury holdings as well as China.

treashold

And Japan is going more into US equities and higher returning assets.

gapjapan

Yes, it is the short-end of the yield curve “where the action is.”  

 

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