FLATTENING YIELD CURVE ABOUT PRIMARILY GLOBAL SPREAD DIFFERENTIALS

Why is the US Yield curve flattening and threatening to invert?

 

Look no further than global yield differentials. Major global bond markets are offering near zero nominal values and negative in real terms.


If you believe the US Dollar will maintain its strength or rise - then buying US Treasuries is an easy decision - especially based on current Monetary Policy Directives from the central bankers.

 

The central banks have little choice based on global trade flows and deficits.