A Rare Treasury Yield-Curve Trade Emerges After Fed Decision
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The Federal Reserve’s interest-rate decision sparked a move in the U.S. yield curve that’s been virtually absent of late.
The spread between 5- and 30-year yields widened after the announcement to 33.6 basis points, the highest since April 27. Curve steepening is a rare enough occurrence -- it’s near the flattest levels in more than a decade amid bets on continued gradual Fed rate hikes. But it’s the manner of the steepening that’s striking.