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Why Yields Rose, The Curve Steepened, and Spreads Narrowed and Where We are Headed

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Most of the rise in the 10-year Treasury yield was due to expectations of faster growth and continued withdrawal of monetary policy accommodation. That caused an increase in real yields and the term premium, which caused the curve to steepen. The high yield spread fell to its lowest point since 2007 on better economic data.

Ned Davis Research | Fixed Income | U.S. Comment | Daily

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