Will The UST Curve Steepen More?

An interesting correlation between 10 Yr US protection and the steepness of the 2s10s curve. The tight correlation completely broke in November and after reaching massive wides in March is now almost back to flat. Overshoot on either side likely? Alternatively Black Swan out of Moody's and a U.S. outlook negative? That U.S. CDS looking kinda cheap with $72 trillion (oops, Freudian slip - billion is the actual number, trillion is 10 year inflation adjusted) of debt coming up next week.



hat tip Credit Trader Sphere: Related Content

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