Yield Curve Flattening Relentless as New Lows Keep Coming: Chart

(Bloomberg) -- The spread between 5- and 30-year Treasury yields, as well as the gap for 2- and 10-year maturities, tumbled Wednesday to the lowest levels since 2007, at 37.2 basis points and 45.7 basis points, respectively. The flattening accelerated after consumer price index data came in largely as expected, perhaps bringing other market-moving events, like President Trump’s threat of a missile attack on Syria, into focus. “CPI, or any other economic data release, is a back-burner item when you have so much geopolitical risk on the forefront,” Tom di Galoma, managing director of government trading and strategy at Seaport Global Holdings, said in an email.

To contact the reporter on this story: Brian Chappatta in New York at bchappatta1@bloomberg.net.

To contact the editors responsible for this story: Benjamin Purvis at bpurvis@bloomberg.net, Mark Tannenbaum

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