Treasury Yield Curve Steepens to Four-Year High on Brexit Hopes
- 5-to-30-year yield gap expands to almost 134 basis points
- Benchmark 10-year Treasury yield approaches key 1% level
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The Treasury yield curve touched its steepest level in four years as risk appetite improved amid signs that negotiators from the U.K. and the European Union have reached the outline of a historic post-Brexit trade deal.
The gap between 5- and 30-year yields expanded on Wednesday to its widest since November 2016 as investors sold long-term debt and stocks climbed given the potential for reduced trade tension and a brighter outlook for the global economy. The sustainability of the move remains a wild card given uncertainty over the U.S. stimulus package, after President Donald Trump demanded changes.