Save US Treasury Yield Spread
Long-term bond yield is usually higher than short-term bond yield due to its greater risks over the long term. In simple words, long-term yields could be seen as a stack of short-term yield, inflation forecast, and economic outlook. Short-term yields may be indicative of current market liquidity.
Short-term bond yield
+ inflation expectations
+ economic outlook
= long-term bond yield
The difference between 30- and 10-year bond yield may reflect inflation expectations over the long-term;
10- and 2-year bond yield spread, on the other hand, may reflect the direction of Fed's interest rate decision;
10- and 3-month bond yield spread may reflect current market liquidity.
US 10Y & 2Y Bond Yield Spread2022-07-010.09 %
US 30Y & 10Y Bond Yield Spread2022-06-300.17 %
US 10Y & 3M Bond Yield Spread0.00 %