More on How Yields Are Throwing a Curve at Investor Expectations

Last week's discussion of basic yield-curve dynamics left many of you begging for more, if my email box is any indication. So this week, let's look at the history of the Treasury yield curve. It helps explain why long-term yields have been rising while short-term yields have been steady.

The Treasury yield curve (please go back and read last week's column if you don't understand what it is) continues to undergo big changes. These moderations reflect changing opinions about inflation, monetary policy and presidential politics.

To briefly recap, the yield of the longest maturity issue, the 30-year bond , is higher than the yields of the 10- and five-year Treasury notes for the first time since January. ...