The Treasury yield curve continues to steepen and is now at its steepest in close to four months. The steepening has both good and bad connotations to it.
(The yield curve shows the relationship between yields and maturity dates for Treasuries at a given point in time).
The most important positive is that a steep yield curve typically precedes economic recoveries. Today the spread between 3-month T-bills and 10-year T-notes—the key empirical gauge used in forecasting models—is 273 basis points, a level that historically has indicated the chances of recession 12 months hence are very small.