Yield Curve Bullish for Small-Caps

September 29, 2025

Yield Curve Bullish for Small-Caps

The 10 minus 2-year yield curve is steepening. Historically, that is bullish for small-cap nominal and relative returns. It is playing out on the nominal side, but small is lagging large since the curve started to steepen. Perhaps that is creating an opportunity for small to catch up.