The US Treasury yield curve has risen to its steepest level in nearly four years.

On February 5th, local time, the yield curve of US Treasury bonds rose to its steepest level in nearly four years. Influenced by rising expectations of interest rate cuts, concerns about the sustainability of inflation, and pressure from fiscal deficits, the yield spread between the 10-year Treasury bond and the 2-year Treasury bond widened to 73.7 basis points at one point, close to the high of 73.8 basis points reached in April 2025, the highest level since January 2022.