SHY - Weirdly Non-Monotonic Yield Curves
By Barkley Rosser
This is a situation that may be on the verge of disappearing and more or less normalizing, but over the last couple of months US bond markets have exhibited a weird phenomenon of non-monotonicity. It has been even weirder than what we saw during the period of negative nominal interest rates, when what we saw was interest rates on US treasury securities fell from the shortest time horizon to a low usually around the two-year time horizon, with the pattern then reverting to its usual upward slope. What has been going on