Hedgopia reports that the long 10 years and short 30 year position is starting to reverse. Short interest on a 30-year is decreasing, short interest on the 10-year is increasing. This could signal a reversal in the macro trend.
- This a bet on a raise on short term interest rates and a decline in long term interest rates. Yield curve flattening.
- A flattening yield curve may be a result of long-term interest rates falling more than short-term interest rates or short-term rates increasing more than long-term rates.
- A flat yield curve is typically an indication that investors and traders are worried about the macroeconomic outlook. One reason the yield curve may flatten is market participants may be expecting inflation to decrease or the Federal Reserve to raise the federal funds rate in the near term.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.