However, the spread between five-year and 30-year yields have narrowed to their tightest range since 2009 on speculation that the Fed will end stimulus and raise rates sooner than expected, Bloomberg reports.
“We have a market that is increasingly buying in to the prospect of sooner-than-expected rate hikes,” Adrian Miller, director of fixed-income strategies at GMP Securities LLC, said in the article. “We’ve seen a large flattening, especially the 5s-30s curve, and that flattening represents a recalibration of the market’s expectations to the growing hawkishness of the Fed.”
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Max Chen contributed to this article.