The 10 year yield treasury rose slightly this week after dipping to 2.17% last week, closing at 2.28% today. The yield curve is flattening, partially due to inflation or the lack thereof. The shorter term (2 and 5 year Treasury) yields are rising on recent positive economic news (manufacturing, payrolls), however, much of the manufacturing performance rise is due to rapidly falling oil prices. This combined with a stagnant wage inflation environment is keeping the longer (10 and 30 year Treasury) yields from rising commensurately. The result is the yield difference between the 10 and 5 year treasuries hit a 6 year low while the difference between 10 year Treasury and 10 year TIPS (inflation indexed) also hit a multi-year low. …stay tuned…. David R. Pascale, Jr.