The Dreaded “Flattening Yield Curve” Meets QE Unwind

The Dreaded "Flattening Yield Curve" Meets QE Unwind
// Silver For The People

wolfstreet.comby  • 

During prior incidents of an "inverted" yield curve, the Fed had no tools to get the market to push up long-term yields. Today it has one: the QE Unwind.

The price of three-month Treasury securities fell and the yield — which moves in the opposite direction — rose, ending the year at 1.39%, after having spiked to 1.47% on December 26, the highest since September 12, 2008. This is in the upper half of the Fed's new target range for the federal funds rate (1.25% to 1.50%). Back in October 2015, the yield was still at 0%:


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