2s10s

2s10s Back to October Levels... Of 2003!

Quantitative Easing is dead and buried. The bond curve just hit a steepness that was last seen in October... not of last year but of 2003. The rush for near duration is accelerating as investors are running away from the 10 year like a herd of rabid buffaloes. If this continues it will destroy any plans for providing cheap 30 year mortgages. The alternative: make near durations unattractive to the point where banks start losing money from the curve flattening.

Updated UST 2s10s Chart

10 Years today rallied to the highest level since the QE announcement, at 3.015%. Additionally, the 2s10s curve is now 10 bps steeper than the pre Quantitative Easing announcement. Just in time for the Fed's QE v2.0 announcement tomorrow. What is another trillion in treasury purchases to US taxpayers? Someone has to pad Bill Gross' pocket. We should all be grateful for the privilege.

Updated UST 2s10s Chart

10 Years today rallied to the highest level since the QE announcement, at 3.015%. Additionally, the 2s10s curve is now 10 bps steeper than the pre Quantitative Easing announcement. Just in time for the Fed's QE v2.0 announcement tomorrow. What is another trillion in treasury purchases to US taxpayers? Someone has to pad Bill Gross' pocket. We should all be grateful for the privilege.

Treasury 2s10s Curve Steeper Than Pre QE Announcement

Things for the Treasury sure aren't looking pretty. With the 10 year about to break 3% outright, the 2s10s chart has just passed pre-Quantitative Easing levels. With Treasury supply really starting to ramp up, this could be a bad sign for agencies and mortgage rates. This happens as the TIPS auction is largely oversubscribed. Seems that the market is happy to jump over the next 2-3 years of deflation and is looking straight at 2013.

Treasury 2s10s Curve Steeper Than Pre QE Announcement

Things for the Treasury sure aren't looking pretty. With the 10 year about to break 3% outright, the 2s10s chart has just passed pre-Quantitative Easing levels. With Treasury supply really starting to ramp up, this could be a bad sign for agencies and mortgage rates. This happens as the TIPS auction is largely oversubscribed. Seems that the market is happy to jump over the next 2-3 years of deflation and is looking straight at 2013.