U.S. Two- to 10-Year Treasury Yield Spread Could Steepen Further
Dow Jones
Aug 18
0523 GMT - The U.S. two- to 10-year Treasury yield curve has scope to steepen further in the next three months, potentially to 70 basis points, DZ Bank analysts say in a note. "While we expect the long-end to continue trending sideways, we see room for short-end yields to go lower," they say. The two- to 10-year curve has significantly steepened over the past two weeks as investors have scaled back their expectations of Federal Reserve rate hikes, the analysts say. The steepening was driven mainly by two-year yields, which have fallen, while 10-year yields remained mostly rangebound. The spread is currently around 55 basis points, with the two-year Treasury yield trading at 4.193% and the 10-year yield trading at 4.741%, according to Tradeweb.
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