Why the 2-10 Year Spread Matters More Than the Curve Level

Episode 27 of The Bond Investing Podcast with Fexingo dives into the narrowing 2-10 year Treasury spread, which has compressed to 42 basis points as of June 2026. Lucas and Luna explore why the slope itself may be a more actionable signal than the absolute level of yields. They discuss how the flattening curve is influencing portfolio duration decisions, the role of the Fed funds rate floor at 3.63, and why short-duration bonds are still favored despite the 10-year holding at 4.45. Specific data from June 1 shows the 2-year yield jumped to 4.05 while the 10-year barely moved, tightening the spread from 47 basis points. The hosts also touch on the 3-month yield rising to 3.78 and what that means for cash alternatives. A fresh angle that avoids overlapping with prior episodes on specific maturities or liquidity. #BondInvesting #TreasurySpread #YieldCurve #2YearTreasury #10YearTreasury #FedFundsRate #DurationStrategy #FexingoBusiness #BusinessPodcast #Finance #FixedIncome #LucasAndLuna #ShortDurationBonds #CashAlternatives #BondMarket #June2026 #CurveFlattening #SpreadCompression Keep every episode free: buymeacoffee.com/fexingo