![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhbhCnpfqfmGHm8WCCyHirobx3jSsbEJFlN8c6hYDt7U2KI4KdQmjVIdSWFNA_TXDvBXnMMd6bJ-M_l-Rm5t8Ay8CGHZZurdrXDUxtJJAWB16nKiqKs9zjliSuAyt5Vmxo2mHZjtoFtVqw/s400/yield+curve+05-28.jpg)
Steepening Yield Curve
Thursday, May 28, 2009 |
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Since the beginning of 2009, the US government yield curve has steadily steepened. The front end of the curve has seen a minor 14 basis point uptick while the back end has experienced a 176 basis point rise from 1/02/09 to 5/27/09. This steady steepening demonstrates rising expectations for inflation as the economy begins to recover. Investors need greater compensation to counteract the interest rate risk they are facing in longer-dated maturities.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhbhCnpfqfmGHm8WCCyHirobx3jSsbEJFlN8c6hYDt7U2KI4KdQmjVIdSWFNA_TXDvBXnMMd6bJ-M_l-Rm5t8Ay8CGHZZurdrXDUxtJJAWB16nKiqKs9zjliSuAyt5Vmxo2mHZjtoFtVqw/s400/yield+curve+05-28.jpg)
Categories: Economics, Economics and Government |
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