U.S. 30-Year Real Yield Turns Positive as Fed Hike Bets Increase
- Better-than-expected jobs data adds fuel to Fed tightening bet
- Yield curve flattened as shorter-end yields leap higher
Chair Jerome Powell signaled the Fed is likely to begin a cycle of interest-rate hikes in March.
Photographer: Brendan Smialowski/AFP/Getty Images
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The inflation-adjusted yield on Treasuries maturing in three decades’ time climbed above zero for the first time since June after stronger-than-anticipated U.S. jobs data added fuel to the argument for faster tightening of Federal Reserve policy.
The so-called 30-year real yield, as measured by Treasury inflation-protected securities, jumped 7 basis points to 0.08%, a level unseen since May. The last time the benchmark was above zero was in June. Nominal Treasuries slid to their lows of the day following the employment data, with the front-end and belly of the curve leading declines.