Yield on 30-Year Treasuries Tumbles as Curve Continues to Flatten
- U.K. yield curve flattens to lowest level since January
- Fed’s hawkish tilt spurred rally in 30-year Treasuries
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This week’s aggressive repricing in U.S. Treasuries is going global, with long-end borrowing costs from Germany to the U.K. sliding as traders brace for central banks to quell fears over rising inflation.
The yield premium on 30-year German bonds over five-year equivalents narrowed to the lowest since March on Friday, while a similar gauge in Britain fell to levels last seen in January. It follows a plunge in long-term Treasury yields on Thursday, which sparked the biggest two-day flattening of curve since March 2020.