Economics
Treasury Yield Curve Is Flattest Since 2007 on Rising Fed Bets
- U.S. two-year note yield closes at highest level since June 6
- Odds of Fed move this year climb to 55% from 47% a week ago
Flattest Treasury Yield Curve Since 2008
This article is for subscribers only.
Treasury two-year notes are the cheapest relative to 30-year bonds since the end of 2007 as hawkish comments from Federal Reserve officials spur speculation the central bank will increase interest rates this year.
The yield on the shorter-maturity debt, which is more sensitive to the outlook for monetary policy, rose for a third day after Fed Bank of Kansas City President Esther George said labor-market gains and rising inflation should prompt higher interest rates. Chair Janet Yellen speaks Friday at an annual symposium in Jackson Hole, Wyoming.