Skip to content

US 2- to 30-Year Curve Reaches Most Inverted Level This Century

  • Inversion deepens as bets on Fed rate hiking increase
  • Moves this week have been supercharged by inflation data
Updated on

The premium of the two-year Treasury yield over the comparable 30-year benchmark increased to a level unseen this century after short-end rates extended their climb in the wake of this week’s hotter-than-anticipated US consumer-price inflation data.

The two-year yield was as much as 35 basis points above the 30-year rate on Thursday, sending the inversion of the yield curve past the depths plumbed in August to levels last seen in 2000.