TREASURIES-Yields jump, curve flattens as inflation soars
By Karen Brettell
NEW YORK, June 10 (Reuters) - 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)