The biggest bond market in the world is 'distorted'
With the US nearing full employment and wage pressure growing, expectations are rising that the Federal Reserve will raise interest rates as soon as this month.

Usually, an improving US economy that's witnessing both a return to full employment and inflation nearing the Fed's 2% target is accompanied by a steepening yield curve in the US Treasury market, the biggest bond market in the world. A steepening yield-curve is technically explained as long-term yields rising more quickly than short term yields — because when things are looking good, and there's lots of healthy opportunities for investment, investors demand more in return for tying up their capital for long periods..............