By Kevin Flanagan, Head of Fixed Income Strategy
Yes, it's time for your final in "Curve"ology 101. While you probably thought all exams were over, alas, your finance professor said, "Not so fast."
The U.S. Treasury ((UST)) yield curve has received a great deal of attention ever since the first inverted construct appeared late last year. Indeed, this negative spread relationship between the 2-Year and 5-Year notes was heralded as a potential sign that there was not only a visible slowdown in the economy was looming but perhaps an outright recession on the horizon. I