{"id":277897,"date":"2025-06-06T01:55:14","date_gmt":"2025-06-06T01:55:14","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2025\/06\/06\/re-inversion-10yr-3mo-weakening-dollar-econbrowser\/"},"modified":"2025-06-25T17:08:11","modified_gmt":"2025-06-25T17:08:11","slug":"re-inversion-10yr-3mo-weakening-dollar-econbrowser","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2025\/06\/06\/re-inversion-10yr-3mo-weakening-dollar-econbrowser\/","title":{"rendered":"Re-inversion 10yr-3mo, Weakening Dollar | Econbrowser"},"content":{"rendered":"

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As of June 5th, 10yr-3mo reinverts.<\/p>\n

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Figure 1:<\/strong> 10yr-3mo Treasury spread (blue), and 10yr-2yr Treasury spread (red), both in %. Treasury via FRED.<\/em><\/p>\n

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Figure 2:<\/strong> Treasury 10 year, % (black, left scale), and broad dollar index (light blue, right scale). Source: Treasury, Federal Reserve via FRED.<\/em><\/p>\n

The dollar has continued to depreciate since 5\/29 (last observation on the dollar), by the DXY, another 0.5% as of 6\/5.<\/p>\n

My interpretation: the GDP outlook is looking less bright, and probably less so than indicated by historical correlation, given the elevated credit risk now implicit in Treasurys (see here<\/a>). Moreover, continued dollar decline is to be expected as Treasury rates decline.<\/p>\n<\/p><\/div>\n

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