My Financial Bible for over 3 decades- The US 2s 5s curve once again tested pivotal resistance at minus 19 to minus 21 bp's today and once again held so far.
Despite that I still expect that this level will soon break (weekly close) and open up the way to head higher towards the target centered on +40 bp's.
Such a move IF seen, would likely be bull steepening and have implications for the 2-year yield and by definition Fed policy in terms of the magnitude and timing of the first cut.
