US bond yields have continued to rise sharply, 2-year yields are up 20bp since Christmas and are now trading around 1.15% after being close to 0.6% in early December.This has led to a massive repricing of Fed policy with close to 100bp of hikes priced during all of 2010 with the first hike starting around summer.
US 10-year yields have also risen a little, but not as much as the 2-year segment.
Hence the curve has flattened from the record high levels reached around Christmas.
