There will be other factors to consider, like inflationary vs. deflationary for example. But a theme we have going is for a 2020 steepening of the yield curve with the late summer flattening to inversion having been the final !!! on the bull boom party.
That’s not to say some things will not be bullish, but a steepening curve – whether under inflationary or deflationary pressure – would certainly mean altered investment strategies.
So here is the live spread (source: CNBC) ticking a new high reading today.
Here’s how it looks over a longer period. A candidate to pivot to a major steepener but not yet confirmed.