Yield Curve (10Y − 2Y)

Shows whether monetary policy is restrictive relative to the economy.

0.5%

Trend YoY growth is +0.5%, accelerating by 2 bps/month over the last 5Y. Deviations have remained below trend for 45 consecutive periods. Latest: -0.1%, 59 bps below trend, a 0.8σ deviation. The latest YoY reading is depressed by 54 bps due to an tough comparison base from Apr 9.

Level

YoY Change

y = −0.6% + 2 bps/mo · t

Deviation from trend

Forecast

Rolling 1Y trend forecast

Forecast made inMay '25Jun '25Jul '25Aug '25Sep '25Oct '25Nov '25Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26Dec '26Jan '27Feb '27Mar '27Apr '27
May '25+0.7%+0.8%+0.8%+0.8%+0.8%+0.9%+0.9%+0.9%+0.9%+1.0%+1.0%+1.0%+1.0%+1.1%+1.1%+1.1%+1.2%+1.2%+1.2%+1.2%+1.3%+1.3%+1.3%+1.3%
Jun '25+0.8%+0.8%+0.8%+0.8%+0.9%+0.9%+0.9%+0.9%+1.0%+1.0%+1.0%+1.0%+1.1%+1.1%+1.1%+1.1%+1.1%+1.2%+1.2%+1.2%+1.2%+1.3%+1.3%
Jul '25+0.8%+0.9%+0.9%+0.9%+0.9%+1.0%+1.0%+1.0%+1.0%+1.1%+1.1%+1.1%+1.2%+1.2%+1.2%+1.2%+1.3%+1.3%+1.3%+1.4%+1.4%+1.4%
Aug '25+0.8%+0.9%+0.9%+0.9%+0.9%+1.0%+1.0%+1.0%+1.1%+1.1%+1.1%+1.1%+1.2%+1.2%+1.2%+1.3%+1.3%+1.3%+1.3%+1.4%+1.4%
Sep '25+0.8%+0.9%+0.9%+0.9%+0.9%+1.0%+1.0%+1.0%+1.0%+1.1%+1.1%+1.1%+1.1%+1.2%+1.2%+1.2%+1.3%+1.3%+1.3%+1.3%
Oct '25+0.7%+0.8%+0.8%+0.8%+0.8%+0.8%+0.8%+0.8%+0.9%+0.9%+0.9%+0.9%+0.9%+0.9%+0.9%+1.0%+1.0%+1.0%+1.0%
Nov '25+0.6%+0.6%+0.6%+0.6%+0.6%+0.6%+0.6%+0.6%+0.6%+0.5%+0.5%+0.5%+0.5%+0.5%+0.5%+0.5%+0.5%+0.5%
Dec '25+0.5%+0.5%+0.5%+0.5%+0.5%+0.4%+0.4%+0.4%+0.4%+0.4%+0.3%+0.3%+0.3%+0.3%+0.3%+0.2%+0.2%
Jan '26+0.5%+0.4%+0.4%+0.4%+0.3%+0.3%+0.3%+0.3%+0.2%+0.2%+0.2%+0.1%+0.1%+0.1%+0.0%+0.0%
Feb '26+0.4%+0.3%+0.3%+0.2%+0.2%+0.2%+0.1%+0.1%+0.0%+0.0%+0.0%-0.1%-0.1%-0.2%-0.2%
Mar '26+0.3%+0.2%+0.2%+0.1%+0.1%+0.0%+0.0%-0.1%-0.1%-0.2%-0.2%-0.3%-0.3%-0.4%
Apr '26+0.2%+0.1%+0.1%+0.0%-0.1%-0.1%-0.2%-0.3%-0.3%-0.4%-0.5%-0.5%-0.6%