Daily Archives: Jan 17, 2018 at 07:12 am EST

Yield Curve Flattens As 2-Year Treasury Rate Rises Above 2%

The 2-year Treasury yield is above 2% for the first time in nearly a decade. This rate, which is seen as a key proxy for monetary policy expectations, ticked up to 2.03% on Tuesday (Jan. 16), based on daily data via Treasury.gov. The increase, coupled with a fractional dip in the benchmark 10-year Treasury yield to 2.54%, squeezed the widely followed spread 10-year/2-year spread to 51 basis points, matching the low reached last month that marks the smallest difference since 2007.
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Macro Briefing: 17 January 2018

GOP plans stopgap funding to keep government open past Saturday: USA Today
US Secretary of State talks of possible war with North Korea: Bloomberg
22 states sue Federal government over repeal of net neutrality: The Hill
World Economy Forum survey: political and economic risks are rising: Reuters
NY Fed Mfg Index: growth ticked lower in Jan but still growing at solid pace: NY Fed
Will higher oil, currency prices force ECB to tighten monetary policy? Bloomberg
Bitcoin and other cryptocurrencies suffer sharp price declines: CNBC
Median 1yr consumer inflation expectations in Dec tick up to 10mo  high: NY Fed