Tuesday, May 21, 2013

Treasury Spreads and Yield Curves

The Treasury spreads and yield curves are still depressed. The FED is keeping the demand down and the rates low as we have been watching for the past 4+ years.
There still is a low spread between the 30 years and 30 day numbers as a percent of the maximum numbers. There is some creep back up recently and it is going to late 2011 numbers. If the FED no longer controls the buy side one can expect significant increases.
The more typical 10 year and 90 day spreads and yields are shown above. Here we see the 90 drop in yield closing in on some of the prior lows and the 10 year yield remaining somewhat fixed.

Sooner than later the FED will let go and these will increase substantially. When is always the question.