For the past week, 10-Year Treasury rates increased by 25bp, resulting in a net change of 40bp over the past two weeks.

Repeat: UP 40BP IN 2 WEEKS.

The red line represents current rates, while the green line shows rates from one week ago. Short-term rates have decreased, while long-term rates have increased.

For terms of 1+ years, the Yield Curve now exhibits a positive shape. As the Federal Reserve reduces its Fed funds rate, short-term rates are expected to decrease further, bringing the Yield Curve back to a normal positive slope.

This positive slope is being achieved through a combination of the Fed cutting short-term rates and market forces driving demand for higher long-term rates

Bill Knudson, Research Analyst LANDCO NEXA