The US 2 Year Treasury Yields is at the highest since 2008 at 2.42% and its spread on the 10 year Treasury Yields is narrowing resulting in a flat yield curve. The last time this happened in 2006 was followed by the Global Financial Crisis in 2007.
This blog view remains that the more the Fed raises rates from here, the more likely the yield
curve is to flatten. Indeed, after having flattened significantly last year, in terms of the spread
between the two-year Treasury and the 10-year, the yield curve began to flatten again towards the
end of last quarter. This is primarily because short-term rates have continued to rise based on rising Fed tightening expectations.
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