2s-30s flattest since the crisis
The Fed is pushing up the front end but the long-end doesn't believe that inflation is coming. Or at least all the QE in the world is muddying the picture enough to skew the signals.
At the moment, you get paid only 72 basis points more to buy 30-year bonds than to buy 2-years. 2s-10s are at just 48 bps.
This flattening of the yield curve definitely has the Fed's attention. If they hiked twice more then 2s-10s might be inverted already and that's a classic signal about an impending recession.
You can make the argument that the Fed will get jittery if this or 2s-10s gets under 25 bps.
