Treasury Yield Curve Steepens as Traders Boost Bets on Fed Cuts

Shorter-term Treasuries outperformed in a volatile session Wednesday that saw traders continuing to boost wagers that the Federal Reserve will lower interest rates in coming months.

The rally pushed yields on two- and five-year notes lower by about one basis point, while yields on 30-year bonds were little changed. The gap between the five- and 30-year bonds is approaching levels last seen in 2021.