Yield curve widens

The difference between the 10-Year Treasury Yield ($TNX) and the 3-month Treasury Yield ($IRX) widened significantly since early October. Short-term rates fell ($IRX), while long-term rates rose ($TNX). As a result, the yield curve is the steepest it’s been in months.

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Comments

[Steve Wilhelm]

And the yields on junk bonds are continuing a downward trend. Evidently the market likes junk bonds better than 10 year Treasuries. With the amount of new and roll-over debt coming to market this is probably not a real great sign.