Fixed Income

The Fixed Income view provides a comprehensive look at the bond market -- treasury yields, yield curves, credit spreads, and key rate benchmarks. Whether you are a bond investor or an equity trader who needs to understand the rate environment, this view puts the data you need in one place.

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Why Use This

Interest rates are the gravitational force of all financial markets. When bond yields rise, stock valuations come under pressure. When credit spreads widen, it signals growing risk aversion. When the yield curve inverts, recession fears intensify. Even if you never trade a single bond, understanding fixed income is essential for making sense of equity, currency, and commodity markets. The Fixed Income view makes the bond market accessible without requiring a Bloomberg terminal.

How to Get Started

1. Open Fixed Income from the sidebar or type "Fixed Income" or "Bonds" in the Command Bar (Ctrl+K).
2. The overview shows key benchmark yields (U.S. 2-Year, 10-Year, 30-Year) and their daily changes.
3. The Yield Curve visualization is displayed prominently, showing the current curve, 1-month ago, and 1-year ago for comparison.
4. Scroll down to see Credit Spreads, Global Sovereign Yields, and Corporate Bond Indices.
5. Click any yield or spread to see its historical chart with customizable time ranges.

Bond Basics

A bond is a loan you make to a government or corporation. In return, you receive periodic interest payments (the coupon) and your principal back at maturity.

• Face value (par): The amount repaid at maturity, typically $1,000.
• Coupon rate: The annual interest payment as a percentage of face value.
• Maturity: When the bond expires and principal is returned.
• Yield: The effective annual return based on the current market price. This is the number that matters for trading.

The critical relationship: bond prices and yields move inversely. When yields rise, existing bond prices fall (because new bonds offer better rates). When yields fall, existing bond prices rise.

Yield Curve

The yield curve plots bond yields across different maturities, from 1-month T-bills to the 30-year bond. It is one of the most important charts in all of finance.

Normal Yield Curve

In a healthy economy, the curve slopes upward -- longer maturities have higher yields. This makes sense: locking up your money for 30 years carries more risk than 2 years, so you demand a higher return. A steepening normal curve signals confidence in economic growth.

Flat Yield Curve

When short-term and long-term yields converge, the curve flattens. This typically happens when the Federal Reserve is raising short-term rates to cool the economy. A flat curve signals uncertainty about future growth.

Inverted Yield Curve

An inverted curve -- where short-term yields exceed long-term yields -- is one of the most reliable recession indicators in financial history. It has preceded every U.S. recession since the 1960s.

• The most watched spread is the 2-Year vs 10-Year (2s10s). When the 2-Year yield exceeds the 10-Year, the curve is inverted.
• Inversion signals that the bond market expects the Fed to cut rates in the future (because of an economic downturn), which would bring long-term rates down.

WARNING

An inverted yield curve signals recession risk, but the timing is imprecise. Historically, the recession has arrived 6 to 24 months after the initial inversion. Do not use it as a short-term trading signal.

Treasury Rates

The Fixed Income view tracks all major U.S. Treasury benchmarks:

Maturity	Also Called	Significance
3-Month	T-bill rate	Proxy for Fed funds rate expectations
2-Year	Short end	Most sensitive to Fed policy changes
5-Year	Belly	Breakeven inflation expectations
10-Year	Benchmark	Drives mortgage rates, equity valuations
30-Year	Long bond	Long-term growth and inflation expectations

The 10-Year Treasury yield is the single most important number in finance. It serves as the risk-free rate against which all other investments are measured.

Credit Spreads

Credit spreads measure the additional yield that corporate bonds pay over equivalent-maturity treasuries. They reflect the market's assessment of default risk.

• Investment-grade spread (IG): The premium for high-quality corporate bonds (rated BBB and above). Typically 80-150 basis points.
• High-yield spread (HY): The premium for riskier corporate bonds (rated BB and below, also called "junk bonds"). Typically 300-500 basis points.

What Spreads Tell You

• Tightening spreads (getting smaller): The market is confident. Investors are comfortable taking credit risk. This is generally bullish for equities.
• Widening spreads (getting larger): Risk aversion is rising. Investors demand more compensation for holding corporate debt. This is a warning signal for equities and the broader economy.
• Spread blow-outs (rapid, dramatic widening): Panic. Credit markets are seizing up. These events (2008, March 2020) often mark the peak of a crisis.

Global Sovereign Yields

The view also tracks government bond yields for major economies -- U.S., Germany (Bund), U.K. (Gilt), Japan (JGB), Canada, and Australia. Comparing yields across countries helps you understand:

• Relative monetary policy: Which central banks are tightening vs. loosening.
• Currency drivers: Higher yields attract capital flows, supporting the currency.
• Global risk appetite: When all yields are falling simultaneously, it signals a global flight to safety.

Pro Tips

• Watch the 2s10s spread daily. It is the market's most distilled view on the economic cycle. You can add it to your watchlist for quick monitoring.
• Rising 10-Year yields above 4.5% historically pressure growth stock valuations. When the risk-free rate is high, future cash flows are discounted more aggressively, which disproportionately affects high-growth, high-P/E stocks.
• Credit spreads are a better equity market indicator than treasuries alone. A 10-Year yield rising because of strong growth is different from a 10-Year yield rising because of inflation fears. Credit spreads help you distinguish between the two.
• Compare real yields (TIPS) vs nominal yields to extract the market's inflation expectations. The difference is called the breakeven inflation rate.
• Use the historical overlay feature to compare today's yield curve to previous economic cycles. The shape of the curve at similar points in past cycles can provide valuable context.

Common Patterns

Pre-recession yield curve inversion: The Fed raises rates aggressively to combat inflation. The 2-Year yield climbs above the 10-Year yield. Credit spreads begin widening from their lows. Within 12-18 months, economic growth slows, and the Fed pivots to cutting rates. The curve steepens again, but this time because short-term rates are falling.

Risk-off credit spread widening: During a market sell-off, high-yield spreads widen from 350 basis points to 600 basis points in a matter of weeks. Equity markets and credit markets are selling off together. When spreads stop widening and begin to tighten, it often signals the equity bottom is near.

Divergent global yields: The Fed is cutting rates while the ECB is on hold. U.S. Treasury yields fall relative to German Bund yields. The dollar weakens against the euro as the yield differential narrows. This cross-market dynamic creates opportunities in both fixed income and currency markets.

Related Features

• Futures Monitor -- treasury futures that move inversely to yields
• Central Bank Monitor -- rate decisions that directly drive the short end of the yield curve
• ESG Dashboard -- green bond and sustainability-linked bond metrics
• Charts & Indicators -- chart yield trends with technical indicators
• Screener -- screen equities by sensitivity to rate changes