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October 1 sees yield curve steepen as 2-year and 10-year spreads widen
Mortgage News Daily said the move follows a shift in economic data expectations and a still largely unchanged Fed rate hike outlook.
Mortgage News Daily said October 1 is picking up where September 30 left off, with the yield curve steepening as the 2-year and 10-year yields move farther apart.
The outlet linked the steepening to a sudden shift in economic data expectations after last Wednesday, along with the fact that the outlook for Fed rate hikes has been broadly flat.
Mortgage News Daily also noted that while 10-year Treasuries and mortgage-backed securities were moderately weaker, the 2-year yield was almost 5 basis points lower.
It said stronger ISM components, including orders, backlogs, and prices, briefly pushed yields higher before they recovered about 20 minutes later.