21 Nov – 25 Nov 2016


After four weeks of steeper yield curves, the yield curve reversed course. The 3y/10y spread dropped 4bps to 79bps and the 3y/20y spread went from 145bps to 140bps. Whether this is a pause during a longer-term trend or something else is debatable. However, wherever one looks in the domestic bond market, movements at the short end were definitely larger.