Wells Fargo Advantage Funds' latest monthly "Portfolio Manager Commentary Overview, strategy, and outlook" says, "The yield curve is much steeper than its historical average, and it's getting steeper. At a certain point, when there is a reasonable pickup in payroll numbers, some improvement in the unemployment rate, and a move away from the deflationary zone, the Fed may be able to raise short-term rates, so as to not be seen as out of step with the rest of the markets. That day may come sooner than many expect." The overview also says, "As credit spreads narrowed after year-end, some market participants began to relax their limits on Spanish, Italian, and Belgium bank issuers. Although the term of that funding is still relatively short -- concentrated primarily on one month and in -- issuers from more favored countries, such as Australia, Canada, and the Scandinavian countries, can easily access the markets for virtually unlimited financing and in maturities that are much longer."
