The extra yield Treasury investors demand to hold 10-year notes instead of 2-year securities touched the highest level in more than a month on evidence the threat of deflation is waning. The 30-year bond yield was headed for a fourth weekly gain in the longest stretch of advances since May 2009 before a government report forecast to show U.S. consumer prices increased for a second month. “Investors got very pessimistic at the end of August, and they have sort of corrected that pessimism” about the U.S. economic outlook, said Luca Cazzulani, a senior fixed-income strategist at UniCredit SpA in Milan.
Treasury yield curve steepens as threat of deflation wanes
September 17, 2010, 9:43am
Jacob Gaffney is formerly Editor-in-Chief of HousingWire and HousingWire.com. He previously covered securitization for Reuters and Source Media in London before returning to the United States in 2009. While in Europe for nearly a decade, he covered bank loans and the high yield market, in addition to commercial paper, student loan, auto and credit card space(s).see full bio
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Jacob Gaffney is formerly Editor-in-Chief of HousingWire and HousingWire.com. He previously covered securitization for Reuters and Source Media in London before returning to the United States in 2009. While in Europe for nearly a decade, he covered bank loans and the high yield market, in addition to commercial paper, student loan, auto and credit card space(s).see full bio