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    Treasury Yields

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    Currently the yield on the 10 year treasury note is ~ 255 basis points (2.55%) above the yield on the 2 year treasury note. Although it is normal to see higher yields on longer term treasuries, these maturity yield differentials are substantially greater than the yield differentials that have been typical over the last 30 years (approximately 3X the normal 70 basis point (.7%) yield spread levels).

    What do the unusually large maturity yield differentials noted above suggest about investor expectations of future short term interest rates ?

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    The unusually large maturity yield terms indicate that investors expect the future short term interest rates to be ...

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