What is a 2s10s curve?

The 2s10s curve or 2s10s spread is simply the difference between the 10-year US Treasury yield and the 2-year US Treasury yield.

Why is the 2s 10s so interesting?

“The 2s/10s is interesting because I think you can look at the 10-year as an expression of what kind of economic growth is anticipated, and the two-year is more tied to Fed activity.

What happened to the 2s10s in December?

In December, a month after Trump was elected, his fiscal stimulus and pro-business policies saw growth expectations rise, and the 2s10s spread reached 1.33 percent. However, as sentiment has waned this spread has fallen back to December levels.