Rapidly Steepening Yields

[Subramaniam]

The difference between 10 yr and 2yr yields have risen to a record 275 bp today.
Maybe the nascent revival in the housing markets is over..
Has inflation already made a comeback, even as people were just thinking about it in the last few months.

An article from Bloomberg:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aoDg3HyZveWY&refer=home

 

[luso]

It is a very bad thing. It pushes the mortgage rate way up.
It seems to me the beginning of the new wave of the yield steepening.
About a week ago, the Street still thinks Treasury will push the yield back to 280~290.
Now, we may face it breaches the 4% mark in 2 or 3 months.

It reminds a lot of ppl about the 2003 story. In 2003 (Aug to Sep), the curve steepened by 150bps.