US Treasury 30Y-5Y Curve Slope Flattest Since Beginning of The Great Recession

The persistent flattening of the Treasury yield curve appears to still have legs, and that may be a sign of economic trouble ahead. On Wednesday, the minutes of the Federal Reserve’s September meeting revealed policy makers’ resolve to stick to their tightening path. The difference between five- and 30-year yields fell below 93 basis points, near the lowest since the start of the last recession. Five-year Treasury notes are among the most sensitive to Fed policy.

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And since 1992, the 30Y-5Y curve slope is deteriorating as if the US is approaching another recession.

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With The Fed talking about raising their target rate in December, is this the end of The Fed’s Snake Oil? Or just the beginning of QE4?

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One thought on “US Treasury 30Y-5Y Curve Slope Flattest Since Beginning of The Great Recession

  1. Pingback: US Treasury 30Y-5Y Curve Slope Flattest Since Beginning of The Great Recession | Jina Scholten's Blog

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