Treasury Yield Curve Re-Inverts with Sag in the Middle, as Government Swats Down 10-Year Yield. But Mortgage Rates Don’t Follow all the Way, Spread Widens

by Wolf Richter
Wolf Street

Short-term Treasury yields of 6 months or less stay put above 4%.

The 10-year Treasury yield has careened lower from 4.77% on January 10 to 4.16% on March 3, and has since then wobbled a little higher to end at 4.26% on Friday, just a hair below the effective federal funds rate (EFFR) that the Fed targets with its short-term policy rates. This decline in the 10-year yield isn’t a coincident.

The government has been trying to push down, talk down, swat down, and wish down long-term Treasury yields to make funding in the economy for businesses and households less costly – the stated policy of Treasury Secretary Scott Bessent.

Continue Reading at WolfStreet.com…

LEAVE A REPLY

Please enter your comment!
Please enter your name here