Long-term Treasury yields have been rising much faster than shorter-term yields, a sign that investors are betting on further acceleration in the U.S.’s economic recovery.
The steepness (or flatness) of the yield curve—the change in yields across different Treasury maturities—is seen as an indicator of economic growth. When the curve “inverts,” or long-term yields fall below short term yields, it is seen as a recession warning. Now the curve is getting steeper, a sign that investors expect stronger U.S. growth and inflation…
Author: Alexandra Scaggs
Publication Date: 4 February 2021
Publication Site: Barron’s