Morning Jolt: Should We Worry about the Flattening Yield Curve?

In today's Jolt, we'll take a look at the bond markets and what they could mean for continued economic growth; how other countries are handling migration issues of their own; and Chuck Schumer's resistance to legislative fixes to the family-separation crisis at the border.

It's Time to Pay Attention to the Bond Markets

“Should we worry about the flattening yield curve?” That's the question everyone was asking after last week's Federal Reserve meeting and the subsequent market action. ("Everyone" might be a generous word.) The "yield curve" is simply the difference between treasury-bond yields of different maturities. Take the spread between the two-year yield, which is hovering around 2.5 percent, and the ten-year yield, which is hovering around 2.9 percent. The two–ten curve is the difference between those two numbers, and it currently sits at 37 basis points, or 0.37 percent: flatter than at any point since 2007.

Financial writers and investors often cite the two–ten curve as a relevant piece of information. Because the two-year yield is a rough signal of the bond market's expectations for monetary policy over the next two ...

June 20 2018

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Should We Worry about the Flattening Yield Curve? Theodore Kupfer In today's Jolt, we'll take a look at the bond markets and what they could mean for continued economic growth; how other countries are handling migration issues of their own; and Chuck Schumer's resistance to legislative fixes to the family-separation crisis at the border. It's Time to Pay Attention to the Bond Markets “Should we worry about the flattening yield curve?” That's the question everyone was asking after last week's Federal Reserve meeting and the subsequent market action. ("Everyone" might be a generous word.) The "yield curve" is simply the difference between treasury-bond yields of different maturities. Take the spread between the two-year yield, which is hovering around 2.5 percent, and the ten-year yield, which is hovering around 2.9 percent. The two–ten curve is the difference between those two numbers, and it currently sits at 37 basis points, or 0.37 percent: flatter than at any point since 2007. Financial writers and investors often cite the two–ten curve as a relevant piece of information. Because the two-year yield is a rough signal of the bond market's expectations for monetary policy over the next two ... Read More Top Stories The Frustration of the Anti-Trump Republicans Jimmy Quinn They're trapped between an obsequious GOP majority and a hysterical progressive... Trump Has Strengthened, Not Undermined, Democracy in the U.S. Conrad Black Trump Has Strengthened, Not Undermined, Democracy in the U.S. Pope Condemns Family Separation at the Border Jack Crowe Francis agreed with the U.S. Catholic Bishops that separating children from parents is "immoral" and "contrary to our Catholic values." ADVERTISEMENT Reasonable Politicians Need to Take Immigration More Seriously Jonah Goldberg So long as there are very poor countries, very poor people will understandably want to move... Congress Should Act on the Border The Editors Congress has it within its power to make it possible to hold families together while their cases are... The Southern Poverty Law Center vs. Prager University Dennis Prager The bad hate the... Weapons of Mass Manipulation Michelle Malkin The New Yorker's fact-checker failed to check her own bias and smeared a military... Socialist Protestors Chase Kirstjen Nielsen Out of D.C. Restaurant Jack Crowe The protestors gathered around her table and began chanting "Abolish ICE," "Shame," and "End Texas concentration camps!" ADVERTISEMENT Introducing NRPLUS We're 'Plus' for Some Very Good Reasons When you become an NRPLUS member, you join an exclusive National Review community, with benefits that touch the content you receive, your website experience, and ultimately your ability to help shape the conservative conversation. LEARN MORE TODAY Photo Essays Cartoons of the Day: June 19, 2018 Cartoons of the Day: June 18, 2018 ADVERTISEMENT ADVERTISEMENT Follow Us & Share 19 West 44th Street, Suite 1701, New York, NY, 10036, USA Your Preferences | Unsubscribe | Privacy View this e-mail in your browser.