yield curve keeps flattening

Looks like the support line of the 10-yr note yield has become resistance, at least as far as the 30-yr bond yield is concerned. The yield curve is still flattening and any further rise of the fed rate could well cause an inversion next year.

The charts below show the price history of the 5yr-10yr note spread and of the 2yr-10yr note spread which can be used to trade either the steepening or the flattening of the yield curve. Details on how to construct these spreads can be found at the CBOT sites: The TUT Spread, Yield Curve Shift Trading Opportunities, Treasury Duration Adjustments.





Categories: interest rates, bond market