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Home > Library > Stable Times > Volume 4, Issue 1  The quarterly publication of the Stable Value Investment Association First Quarter 2000 • Volume 4 Issue 1 Tracking Stable Value Yield Spreads, March 1999 to February 2000By Karl Tourville, Galliard Capital Interest rates have continued their upward climb during the last several months on the short end of the curve as strong economic growth coupled with modest inflation has lead the Federal Reserve to maintain a tightening bias. The long end of the curve has inverted with the 30 Yr. Treasury yielding 6.15% as of 2/29, which is lower than the 1 Yr. yield of 6.23%. This inversion is a result of the reduced supply of longer-term Treasury securities as the US Treasury cuts back issuance and buys back debt. In this environment there has been an upward pressure on spreads particularly in the mortgage-backed sector. GIC spreads have remained constant over past few months with the 5 Yr. GIC spread at approximately 100 over Treasuries. 
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