10 Oct – 14 Oct 2016


Yields rose across the curve although movements were smaller for ultra-long maturities and the result was a flatter yield curve. There had been some talk of the 30 year bond issue leading to a steeper yield curve on the basis the additional supply of long-dated paper would crowd out other lines and lead to them being sold at higher yields. However, the effect on the yield curve was not in accordance with this scenario and the 3y/10y spread remained steady at 54bps while the 3y/20y spread fell by 5bps to 110bps.