The yield curve is getting less inverted, mostly for good reasons. The yield curve is still looking scary, but not quite as scary as it was as recently as a few weeks ago. Wednesday’s benign inflation report from the Labor Department looked like good news to investors, and one of the places it manifested itself was in the U.S. Treasury market. With growing optimism that the Federal Reserve will raise rates just one more time later this month, and then call it quits, yields fell across the board. Notably, the yield on the two-year note fell 0.15 of a percentage point to 4.74%. The yield on the 10-year note fell by less, declining 0.12 of a percentage point to 3.86%. With that, the 10-year yield is now 0.88 of a percentage point below the two-year.
Source: WSJ.com: Markets
