Wednesday, June 21, 2017

YC2YR US Treasury Yield Curve 2-10 Spread Weekly Chart; Record Narrowing to Decade Lows

The 2-10 yield spread is under 80 bips again this morning to 79.5 basis points teasing levels from last year and from late 2007; one-decade lows. The 5-30 spread is also indicating a flattening yield curve at the narrowest levels since 2007.

Treasury yields are; 2-year 1.35%, 5-year 1.76%, 10-year 2.15%, 30-year 2.73%. The 2-10 spread is 80 bips and the 5-30 spread is 97 bips. German 10-year bund yield 0.25%. The US-German 10-year yield spread is 190 basis points and narrowing.

Comically, the television pundits, commentators and money managers are all standing on soap boxes proclaiming that the banks are the best investment going forward. Fred Fafooshnik, a retiree that sits each morning at the local coffee shop, is bragging that he took his entire life savings and placed it into the banks just like the guy on television advised.

Banks need a steeper yield curve to make lots of dough not a flattening yield curve. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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