US Yield Curve Disinverts as Soft Labor Data Fuels Fed Cut Bets
- Two-year Treasury yields briefly dipped below those on 10-year
- Data showed US job openings fell to lowest level since 2021
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A key segment of the US Treasury yield curve briefly turned positive as weaker-than-anticipated labor-market data bolstered bets on steep interest-rate cuts by the Federal Reserve.
Treasuries jumped on Wednesday — led by shorter-maturity notes that are more sensitive to the Fed’s monetary policy — after US job openings fell in July to the lowest since the start of 2021. That pushed the US two-year note’s yield to dip below the 10-year note’s for only the second time since 2022 as traders built up wagers on a super-sized rate reduction this month.