Trouble With The Curve(s): Today’s US Yield And Swaps Curves Versus 01/04/14 Curves (Flattening And Irregularities)

Today’s Treasury yield curves (actives and on/off the run) as well as the Dollar Swaps and OIS curves are steeply upward sloping. Again, notice the downward sloping segment of the OIS curve.

trublcurves

But if we look at these curves on January 4, 2014, we see that the curves are even more steeply sloped and all curves are pretty uniform.

curves010414

One curve, the US Treasury 10Y-2Y, seems hell bent on inverting (e.g. 2Y yield > 10Y yield).

210rec.png

Treasury Secretary Mnuchin says to remain calm and all is well. 

remaincalm

Remain calm. All is well!

 

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