Won't this cause a stronger dollar?：U.S. yield curve
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Now, the theme this time is something I have introduced many timesThe US Treasury yield curve.
Source) from Bloomberg, created by the administrator
The above chart shows the difference between the U.S. 2-year and 10-year Treasuries and the USD/JPY rate.
As of the weekend of January 26
2-year note 2.12%
10-year note 2.66%
10-year minus 2-year 0.54%
USD/JPY rate 108.63
This time, there has been a lot of focus on the rise in the 10-year yield, but the 2-year yield has also risen above 2% and continues to climb.
The 10-year yield has been pushed up a little from the 2-year, but its increase is still limited.
Fundamentally, a major factor is that U.S. inflation is not rising.
The yield spread between the 2-year and 10-year as of January 19 was 0.592%, and it has been narrowing since then.
This is said to be a flattening of the yield curve.
As a result, with Governor Kuroda’s remarks, the dollar is weakening against the yen.
Note) The above reflects my personal views and is intended solely to improve financial literacy. It is not created for investment solicitations. Also, while the blog content is based on data from reliable sources, the administrator does not guarantee its accuracy. Please make actual investment decisions at your own risk.
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