The 2/10 Spread Drops to 10-Year Low

Last week, The spread between the 2- and 10-year Treasury dropped to 67 basis points. That’s the narrowest in a decade.

This may suggest that the Federal Reserve doesn’t have a lot more room to play with interest rates. The yield curve could go negative with just three more hikes, one of which is coming next month.

The forecast from the Fed has been to hike rates several more times. We’re not in the danger zone just yet. In fact, the economy looks pretty good. However, this won’t last forever.

Posted by on November 13th, 2017 at 10:58 am

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