PRESS ROOM
US Treasury yield curve steepens on stimulus hopes
Wednesday 13th January '21
The US Treasury yield curve has steepened relative to one month ago as long term rates have risen due to the increased likelihood of a larger US fiscal stimulus. While 10 year Treasury yields have gathered attention after rising to 1.12% on 13th January 2021 - their highest level since March last year, they remain meaningfully below where they were at the start of 2020. The real curve has also steepened over the last month but rates at the front end of the curve have fallen while long term rates have remained largely unchanged. This means that inflation expectations in the near term have risen while markets expect interest rates from the Federal Reserve to remain low.