Treasury yield curve flattens
Grade: Jury still out
“The yield curve inverted several times in 2019 and credit spreads tightened at the start of the year before widening over the last couple of months. For the year, the spread between the 2- and 10-year segments of the Treasury yield curve widened from 19 to 25 basis points. And the spread between the 10-year Treasury and AAA-rated bonds has tightened by 42 basis points. We think fixed income market volatility will persist, making the outcome of this prediction highly uncertain.”
