The yield spread between short-term and longer-duration US government bonds is narrowing, reflecting investors’ bets the Fed wil

CFA General
#1

A news article stated: “The yield spread between short-term and longer-duration US government bonds is narrowing, reflecting investors’ bets the Fed will be cautious.”

Can someone help me explain what they mean.

Also I dont see the narrowing based on this data

https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield

Many thanks,

#2

The yield on the 1-year is up about 20 bp, the 5-year is up 15 bp, the 10-year is up 10 bp and the 30-year is up 5 bp. I think this is what the author was referring to. It’s not like the yield curve flipped, but it is a little flatter.

#3

thanks chad