Happy July 5th!
The US Treasury yield curve has just flattened to BELOW 30 bps.
Liquidity moves markets!Follow the money. Find the profits!
Yes, the 10-year Treasury note yield fell slightly while the 2-year Treasury note yield rose … again.
Notice that the zero coupon 2 year volatility has been declining as The Fed gradually raises rates.
Yes, it is the short-end of the yield curve “where the action is.”