U.S. 2-Year Swap Rate Narrows to Least in Month on Credit Surge
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U.S. two-year swap spreads narrowed to the least in a month after a Federal Reserve report showed consumer credit surged by the most in 10 years, signaling households are more willing to borrow and spend.
Treasuries, which were little changed today, have failed to extend 2011’s rally as the world’s biggest economy shows signs of improving. Benchmark 10-year yields were still within 30 basis points of the record low, reflecting demand for the relative safety of America’s debt during the European fiscal crisis. The U.S. is scheduled to auction $32 billion of three-year notes today, after a sale of the securities last month drew record bidding.