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August 19, 2005

FLAT LINE

The world may not be flat, but the yield curve is pretty darn close to it. David Merkel at Realmoney.com notes today:

"The yield curve slope is down to 20 basis points as measured by the difference in 10- and 2-year Treasury yields."

Pretty amazing. Put another way, the premium you get for tying up cash in government bonds for an additional eight years is measly 20 cents on every $100.

Posted by dan at 05:00 PM