Treasury Spreads, Yield Curve Steepest on Record
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Curve Watchers Anonymous is watching the spread between 2-year treasuries and 30-year treasuries. Bloomberg reports "The spread between yields on the 30-year bond and the 2-year note marked the steepest slope in the yield curve since at least 1977, when regular offerings of long bonds began and Bloomberg started compiling the data."
Here are a few charts. Click on any chart below for a sharper image.
30-Year Minus 2-Year Treasury Spread
10-Year Minus 2-Year Treasury Spread
10-Year TIPS Minus 10-Year Treasury Spread
Bloomberg notes "Treasury Inflation Protected Securities showed traders’ expectations for price increases were near an eight-month high on speculation the Fed’s plan to buy bonds in a strategy called quantitative easing will facilitate faster growth."
2-Year Treasury Yield
Yield Curve as of 2011-01-18
click on chart for sharper image
Symbols
- $IRX 03-Mo Treasury Yield
- $FVX 05-Yr Treasury Yield
- $TNX 10-Yr Treasury Yield
- $TYX 30-Yr Treasury Yield
The chart depicts monthly CLOSES of treasury yields. Unfortunately E-Signal does not have a symbol for 2-year treasuries. StockCharts does, but it cannot produce that chart.
The curve is artificially steep because Bernanke has the short end of the curve pegged near zero percent.