UAE Chief Economic Adviser: the flattening of the United States debt curve sends a double signal

Mohamed El-Elian, the Chief Economic Adviser of the United Nations, stated that the shift in the United States debt yield curve today had sent two signals. The two-year and 10-year spreads narrow by about 7 basis points, and the two-year and 30-year spreads by about 10 basis points, with a downward trend. According to Eleanor, this reflects a double interpretation of the fixed-income market: In the short term, the market’s hawk repricing is a long-term endorsement of the Fed’s long-term credibility, following the firm commitment of Fed Chairman Walsh to inflation objectives。