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Yield Ahead? Some See a Flat Stretch

With the gap between short- and longer-dated Treasury yields narrowing to less than a quarter of a percentage point, the yield curve is looking more like a flat line.

Nonetheless, investors are intent on squeezing every last bit of profitability out of the curve-flattening trade, which is essentially a bet that two- and 10-year Treasury yields will converge. The pace of the flattening is likely to slow, as the difference between these yields heads down the homestretch to zero from its current level hovering at 0.22 percentage...