EFTA Document EFTA01385930

27 March 2015 US Fixed Income Weekly explains for about 35 bps of the excessive flatness using the Michigan beta in our model. If we plug in the lower of these two market-based measures, without recalibrating the model, 5s-10s looks 20 bps below fair value. Another explanation could be that there is some upward pressure on the 5y point of the curve. This could be the market pricing in a Fed that seems to be drifting apart rather than coming to consensus on the appropriate terminal Fed fu