“Flattened” – Jobs Miss Causes (More) Trouble With The Curve

Yes sir!

Because nothing says “Trumpflation onward and upward” like the 2s10s at its flattest since October…

Curves

Here’s Bloomberg:

  • USTs Bull Flatten; Front-end Lag Pushes Curves Through YTD Lows
  • Treasuries broadly maintain post-jobs report gains as 5Y-30Y yields lower by 3bp-4bp on the session; front-end of the curve underperforms, sees 2s10s at flattest levels since October and 2s5s flattest since November.
  • 2s10s tighter by 2.8bp and 2s5s by 2.4bp as front-end gains behind rest of the curve reflect little movement in the Fed policy path over near-term horizon; June hike odds remain close to 90% according to Fed dated OIS; further out into 2018, odds of rate hikes also little changed

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