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TREASURIES-Yields jump, curve flattens as inflation soars

TREASURIES-Yields jump, curve flattens as inflation soars

reuters.com · 06/10/2022 09:03
TREASURIES-Yields jump, curve flattens as inflation soars

By Karen Brettell

- Two-year U.S. Treasury yields rose to their highest level in three-and-a-half years on Friday and a part of the yield curve reinverted after data showed that U.S. consumer prices accelerated in May.

The consumer price index increased 1.0% last month after gaining 0.3% in April, as gasoline prices hit a record high and the cost of services rose further. nL1N2XW25Z

Two-year yields US2YT=RR, which are highly sensitive to interest rate hikes, spiked as far as 2.922%, the highest since Nov. 2018. Benchmark 10-year yields US10YT=RR reached 3.085%, the highest since May 9, before dropping back to 3.046%.

The closely watched two-year, 10-year Treasury yield curve US2US10=TWEB flattened to 12 basis points, from 22 basis points before the data.

The three-year, 10-year portion of the yield curve reinverted US3US10=TWEB for the first time since May 4. Three-year to seven-year yields are all trading above those on 10-year notes.


June 10 Friday 8:52AM New York / 1252 GMT


Price

Current Yield %

Net Change (bps)

Three-month bills US3MT=RR

1.2825

1.3044

0.030

Six-month bills US6MT=RR

1.8

1.8414

0.033

Two-year note US2YT=RR

99-54/256

2.9159

0.099

Three-year note US3YT=RR

99-98/256

3.092

0.088

Five-year note US5YT=RR

97-184/256

3.1245

0.059

Seven-year note US7YT=RR

97-192/256

3.1117

0.027

10-year note US10YT=RR

98-140/256

3.0456

0.004

20-year bond US20YT=RR

98-96/256

3.3625

-0.039

30-year bond US30YT=RR

95-12/256

3.1311

-0.039





DOLLAR SWAP SPREADS




Last (bps)

Net Change (bps)


U.S. 2-year dollar swap spread

37.00

-0.25


U.S. 3-year dollar swap spread

18.25

-0.50


U.S. 5-year dollar swap spread

4.25

-1.25


U.S. 10-year dollar swap spread

5.75

-1.00


U.S. 30-year dollar swap spread

-24.50

-1.75



(Editing by Barbara Lewis)

((karen.brettell@thomsonreuters.com))