Long-Bond Pain Resumes, Steepening U.S. Treasury Yield Curve
- Yield increase ‘far from irrational’ given economy: strategist
- Traders wait to hear from Fed officials including Chair Powell
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Long-term Treasuries resumed their selloff, though trading was more orderly than during Thursday’s troubled session, as stocks rose and investors focused on improved U.S. economic prospects.
Yields on 30-year bonds increased as much as 8.1 basis points to 2.23% on Monday, and 10-year rates also climbed. By contrast, shorter-dated Treasuries found support, steepening one of the most widely watched yield curves: the 5- to 30-year gap. Late in the session it was 7.6 basis points steeper, one of the biggest increases since the pandemic began.