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The yield curve for U.S. government bonds is currently very unusual – it's U-shaped. As shown in the following, the curve has been shifting dramatically since COVID in 2019.
In addition to the changes in
The Shapeshifting U.S. Government Bond Yield Curve
Summary
- The U.S. Treasury yield curve is unusually U-shaped, reflecting market uncertainty and rare economic conditions.
- Intermediate-term bonds are being bid up due to concerns about tariffs and future economic risks, suppressing yields in that range.
- The Treasury's $10 billion bond buyback aimed to save on interest costs, exploiting the current yield curve structure.
- Investors should note that shorter maturities now offer higher yields with lower risk, a rare opportunity in the current environment.
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