Explainer: The U.S. yield curve has been flattening: Why you should care

The United States Department of the Treasury is seen in Washington, D.C., U.S., August 30, 2020. REUTERS/Andrew Kelly

NEW YORK, Feb 10 (Reuters) – The U.S. Treasury yield curve has been flattening over the last few months as the Federal Reserve prepares to hike rates, and some analysts are forecasting more extreme moves or even inversion.

Unabated inflation supports their argument, with recent consumer prices readings fueling market expectations that the Fed may increase rates more aggressively than anticipated to cool the economy.The shape of the yield curve is a key metric investors watch as it impacts other asset prices, feeds […]

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