Sunday, April 15, 2007

Treasury Yield Curve May Turn Positive; Gross, Lundgren Pick 2s Over 10s

(Bloomberg) -- Bond investors are starting to bet the Treasury market is returning to normal.

Yields on two-year notes will fall below 10-year Treasuries and stay there for the first time since August, say investors from Pacific Investment Management Co.'s Bill Gross to Colin Lundgren at RiverSource Institutional Advisors. During the past decade, the so-called yield curve has been inverted only 20 percent of the time, according to data compiled by Bloomberg.


Read more at Bloomberg Bonds News

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