Treasury 2- to 30-Year Spread Narrows Before Fed Debt Buyback

The difference in yield between 2-and 30-year Treasuries shrank by the most in four days as the Federal Reserve prepares to buy longer-term debt tomorrow, the second of three bond purchases by the central bank this week.

The Treasury 30-year bond yield declined for first time in six days as the Fed prepared to purchase up to $2.5 billion in Treasuries maturing between August 2028 and November 2040 as part of its plan to bolster the economy. The yield on 10-year securities earlier reached a nine-month high following the Feb. 4 report that showed U.S. unemployment fell to 9 percent in January. Treasury plans to sell $72 billion in notes and bonds during the next three days.