The Yield Curve Steepens

The widening yield curve is the most important recent development on Wall Street. Long-term interest rates had already been creeping upward, but they started to break out after mid-May.
Tyler Durden notes that the spread between the 2- and 10-year yield is now at an all-time record. Arnold Kling says that the short-term effect of stimulus package is negative.
Here’s a look at the yield curve since December.

Posted by Eddy Elfenbein on May 28th, 2009 at 8:32 am

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