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…