Treasury Yield Curve Animation

FAQ: Why is the 4-Month (Mo4) Yield Missing from Older Date Ranges?

The U.S. Treasury did not regularly issue 4-month (17-week) bills until October 19, 2022. Prior to that date, the Treasury's daily yield curve data simply does not include a 4-month maturity point, so any date range that predates October 2022 — including the January 2021 historical low reference line — will show a gap at the Mo4 position on the chart. This is expected and reflects the actual data available at the time, not a data error.

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FAQ: Why is the 10-year and 30-year Treasury Yield Lower than the 20-year?

This phenomenon is called a "yield curve kink". Normally, longer-term bonds have higher yields due to greater uncertainty over time, but when the 20-year yield is higher than the 10-year and 30-year yields, it's often due to supply-demand imbalances and market preferences.

Key Reasons:

• Supply and Demand: The U.S. Treasury issues more 20-year bonds relative to demand, which can push their yields higher.
• Investor Preference: Institutional investors, like pension funds and insurance companies, often prefer 30-year bonds for liability matching. This demand lowers the 30-year yield.
• Liquidity Differences: The 10-year and 30-year bonds are more liquid (traded more frequently) than the 20-year, which makes them more attractive, keeping their yields lower.