U.S. Treasury Yield Curve
October 25, 2007
Investors in United States Treasuries have to extend maturities out at least 5 years to earn a 4.00% yield and are only rewarded with another 50 basis points by extending out 30 years. Analysts believe a steepening of the yield curve is on track for 2008 with inflatin expected to pick up.
Investors may find the best value in the six-month yield curve (where the yield curve bump up in yield before falling again), while they wait for better long term rates.