Back from a long vacation—it will take me a while to catch up on what I missed.
I notice that 5-year Treasuries are currently yielding 1.56% and 10-year yields are 2.04%. I was taught two theories of the yield curve:
1. Expectations hypothesis—> Long term yields are an average of expected future short term yields.
2. Term premium hypothesis—> Long term yields are an average of expected future S-T yields, plus a term premium.