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By HaleStewart December 2, 2013 5:56 pm
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US Yield Curve is Widening

Above is a chart of the difference between the US 10 year and US 2 year bond.  What we see is a widening of the yield curve over that last few months.  The primary driver of this has been the 10-year treasury bond which as sold off in reaction to news that the Federal Reserve will start to taper its bond purchases over the next few months. 

A widening yield curve is usually a signal that traders expect growth to pick-up. 

Hale Stewart is a former bond broker who has been writing about economics and financial markets since 2006 on the Bonddad Blog.  He is also a tax attorney with a domestic and international practice while also forming and managing captive insurance companies for US companies.   You can follow him on twitter at:@captivelawyer

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