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Treasury Spreads, Yield Curve Steepest on Record


The curve is artificially steep because Ben Bernanke has the short end of the curve pegged near 0%.


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.

30-Year Minus 2-Year Treasury Spread
30 Year Minus 2 Year Treasury Spread

10-Year Minus 2-Year Treasury Spread
10 Year Minus 2 Year Treasury Spread Chart

10-TIPS Minus 10-Year Treasury Spread
10 TIPS Minus 10 Year Treasury Spread Chart

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
2 Year Treasury Yield Chart

Yield Curve as of January 18, 2011
Yield Curve as of January 18 2011 Chart


  • $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 Ben Bernanke has the short end of the curve pegged near 0%.

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