Fixed Income And Currency Market

19 Jul 2020

When New and Old 10yr Spreads Flatten, Bull Widening is the Next Move

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The spread differential between the new 10 year bond, the 5.79% 2030 bond and the old 10 year bond the 6.45% 2029 bond is at just 9bps. The spread has fallen from over 20bps since the issuance of the new bond. The sharp fall in spread indicates that the market is bullish and is willing to compress the spread for extra yield.

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Arjun Parthasarathy
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