The U.S. Treasury yield curve is likely to continue to flatten, say TD Securities' rates strategists in a note. However, they reckon, short-lived steepening is possible. "Tactical steepening is possible given the extent of recent flattening," they say. "But with the market continuing to pencil in rate hikes and steepening still crowded, flattening could remain the near-term direction," they say. Having hit a multimonth low just below 25 basis points on June 24, the two- to 10-year U.S. Treasury yield spread closed at 34.6 basis points on Thursday, according to Tradeweb. (emese.bartha@wsj.com)
Dow Jones Newswires
U.S. Treasury Yield Curve Has More Room to Flatten — Market Talk
The U.S. Treasury yield curve is likely to continue to flatten, say TD Securities' rates strategists in a note. However, they reckon, short-lived steepening is possible. "Tactical steepening is possible given the extent of recent flattening," they say. "But with the market continuing to pencil in r…