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This metric suggests there’s an economic boom ahead — and possibly inflation

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A person works out at Planet Fitness as they re-open at 25 percent capacity in Boston’s Dorchester on Feb. 1, 2021.

Jessica Rinaldi | Boston Globe | Getty Images

As Washington squabbles over stimulus, the bond market is already counting on lots of fiscal spending and an economic bounce back. In an extreme case, inflation might be a risk.

The metric the bond market is watching is the Treasury yield curve, or the difference between rates on various maturities, now at its steepest level since May 2017.

A steepening curve is typically viewed as a positive sign for the economy, the stock market and corporate earnings, while a flattening one is a warning for economic weakness.

The widely watched…



Source cnbc.com

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