Friday, November 11, 2016

Treasury Spreads

From time to time it is worth watching Treasury spreads. The chart below is the yield curve for several dates including yesterday.
Note yesterday has the highest short term rate. The curve is flattening as well.
The above is the spread of 30:30, the maximum spread. It hit a low a few weeks ago, almost 0,40 and now is up again. Remember that a negative yield curve has been seen back in the late Carter days.
The above is the 10 year and 90 day spread. It is quite low but more importantly we see the spike in the short term yields. Remember that the Treasure hols a lot in that category and thus it drives up Government costs.