Tuesday, June 6, 2017

Treasury Spreads June 2017

Treasury spreads are flattening out again. Look at the one above for yesterday and it seems to be as flat as one can get before the FED increases the short term rate. Note if the FED does increase the short term we may eventually get to an inverted curve again. The concern should be the long term and the fact that the FED is trying to unload the $4 trillion of junk on its books!
The above provides a good look over the past ten years. Worth thinking about!