FYI: Bond strategists have a new favorite culprit for the relentless flattening of the U.S. yield curve: the stock market.
The gap between short- and long-dated Treasury yields fell to a fresh 10-year low this week, extending the trend that has dominated the world’s largest bond market for weeks. One reason the flattening dynamic has room to run is a shift in asset allocation among money managers in favor of long-dated Treasuries, according to a growing chorus of strategists.
Regards,
Ted
https://www.bloomberg.com/news/articles/2017-11-22/thank-record-high-stock-prices-for-a-flattening-u-s-yield-curve
