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Yield Curve
To advance what we have noted before,
another 25-basis point Fed cut will not
affect all points (technically called
tenors) of the yield curve in the same
way. A rate cut typically steepens the
yield curve (meaning shorter-term
yields would drop by more than
longer-term yields) instead of creating
an equivalent decline across the whole
curve. (That is also why mortgage rates
don't correlate perfectly with Fed policy
changes!)
Source: Bloomberg; Envestnet Quantitative Research Group (QRG).
1Y 2Y 3Y 5Y 7Y 10Y 30Y
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Yield
%
Maturity
Mid YTM as of 09/30/25
Mid YTM as of 09/30/24
20251003-4872948
