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US yield curve steepens to widest in more than a month
The US yield curve, as represented by the spread between yields on the 30- and five-year treasuries, jumped to 111 basis points on Thursday. That was the highest level since July 8.
The curve has steepened due to economic optimism and a flood of new bonds, as noted by popular macro analyst Holger Zschaepitz. In addition, the disappointing 30-year bond auction may have played a role in lifting yields at the long end of the curve.
Steepening of the yield curve usually bodes well for the US dollar.
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
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