10-2 Treasury Yield Curve Almost Compels Fed Balance Sheet Runoff
10-2 Treasury Yield Spread The 10-2 yield curve will be a concern for the Fed. Since April 2021 it has been flattening considerably (blue square area). The Fed has indicated three rate hikes for 2022, and the market sees a distinct possibility for a fourth. However, the Fed (and central banks in general) tend to operate on the short-term side of the yield curve. This means that, in isolation, these…







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