Investors Renew Love For The Long End

Short-term Treasury yields usually rise along with investor expectations for tighter Fed rate policies while longer-term yields are more sensitive to growth and inflation sentiment. Investors typically monitor the yield curve, or difference between long- and short-term yields, as an indicator for economic growth. The last time short-term rates exceeded long-term yields was before each recession since at least 1975, or something also known as an inverted yield curve.

“On Tuesday, benchmark 10-year Treasury yields US10YT=RR fell to 3.036 percent, the lowest level in over seven weeks. It has fallen steadily from a 7-1/2 year peak of 3.261 percent set on Oct 9, Refinitiv data showed,” according to Reuters.

TLT has a 30-day SEC yield of 3.26%.

For more trends in fixed income, visit the Fixed Income Channel.