Recession Fears Bolster Treasuries, Short-End Yields Plunge
- The 5-year rate at one stage slid by more than a quarter point
- Bonds from Australia to Germany have extended their advances
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Treasuries extended their surge Friday as new data on US manufacturing added fuel to concern that Federal Reserve rate hikes will lead to a recession.
Benchmark yields slumped across the curve, with those in the belly and the short-end leading the way and the five-year rate at one stage plummeting by more than a quarter of a percentage point to 2.78%. The widely watched 5-to-30-year yield curve differential steepened by more than 10 basis points on the day. Benchmark yields closed off their lows, with the five-year rate at 2.88%, in a shortened session before the extended Independence Day weekend.