MSCI USA Cyclical Sectors-Defensive Sectors Spread USD Index vs. 2-Year/30-Year U.S. Treasury Yield Curve

This chart suggests that cyclical outperformance of defensives tends to be correlated with the shape of the 2-year/30-year U.S. Treasury yield curve.

Image: Morgan Stanley Research

MSCI USA Cyclical Sectors-Defensive Sectors Spread USD Index vs. 2-Year-30-Year U.S. Treasury Yield Curve