Treasuries Experience a ’Curve Steepener.’ Why It’s Time to Bail on Bills.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 26 2024
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Should l Buy ?
Source: Barron's
Yield Curve Steepening: The Treasury yield curve has steepened, with the 10-year yield surpassing the two-year yield for the first time in over two years, indicating a shift in investor preference towards longer-term notes and bonds due to rising inflation expectations and normalization of returns.
Impact on Investors: Rising yields are causing losses for current holders of 10-year notes while providing better returns for new buyers; this trend may lead to lower net-interest income for banks and money-market funds, influencing Federal Reserve policy decisions moving forward.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
