U.S. Yield Curve Steepens as Bets Decline on Quicker Rate Boosts

The difference between yields on Treasury five-year notes and 30-year bonds reached the widest in two weeks as investors cut bets on how quickly the Federal Reserve will raise interest rates.

The yield curve, as the gap is called, steepened last week for the first time in a month as the U.S. gained fewer jobs than forecast, pushing shorter-term rates down faster than longer-term yields. Traders saw a 45 percent chance the Fed will raise rates by June, versus 49 percent a month ago, fed funds futures trading showed. The Treasury said its borrowing needs this quarter fell to the lowest for the period since 2007.