The U.S. Treasury yield curve | 11 February 2022

11 February 2022, GBP/USD

The U.S. Treasury yield curve

GBPUSD trading plan:

The U.S. Treasury yield curve has been flattening over the last few months as the Federal Reserve prepares to hike rates. The shape of the yield curve is key metric investors watch as it impacts other asset prices, feeds through to banks' returns and even predicts how the economy will fare. A flattening curve can mean the opposite: investors expect rate hikes in the near term and have lost confidence in the economy's growth outlook. As a result, the shape of the Treasury yield curve has been generally flattening. A closely watched part of the curve, measuring the spread between yields on two- and 10-year Treasury notes, shows the gap at roughly 47 basis points.

Investment idea: sell 1.3544 and take profit 1.3781.

David Johnson
Analyst of «FreshForex» company
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