Thursday, July 05, 2007

The yield curve is becoming flat again. The 3-month/10-year spread has shrunk from +60 Basis Points on June 18 to +5 BP on July 3. Fear in the mortgage market is spreading to Treasuries.

1 comment:

Anonymous said...

Would appreciate your thoughts on this article by Mark Hulbert concerning the lack of clarity and seeming futility of following a flattening or inverted yield curve:

http://www.marketwatch.com/news/story/now-not-inverted-yield-curve/story.aspx?guid=%7B308184EA%2DA2A2%2D4B4E%2DA55A%2DDA251E680AA8%7D

As suggested by Hulbert, it does seem that this tool is not being used in a clear manner either on this blog or elsewhere.