Treasury Curve Flashes New Warnings as Jobs Data Fuel Rate Bets
- Gap between 2- and 30-year yields flips below zero after data
- Traders see growing chance that Fed hike a half-point in May
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U.S. government bond yields reached new levels of inversion -- including the two-year rate exceeding the 30-year for first time since 2007 -- after a strong jobs report bolstered bets that the Federal Reserve will increase the size of its next interest-rate hike.
Yields rose across the curve, with the biggest gains seen in shorter-term securities that are highly sensitive to Fed moves.