Dec 18. Indications that curve flattening has run its course?
Below is 5/10 yield spread. Currently 54 bps.
From the low in 2000 (-37.5 bps) to the high in 2011 (144 bps), the 50% retrace is 53 bps. We’re there.
From the low in 2006 (- 5bps) to the high in 2011 (144 bps), the 61.8 retrace is 52 bps.
Upward sloping line off those two lows is currently ~47 bps.
Seems like a pretty low risk place to buy some.
