The U.S. yield curve flattened Tuesday as investors mulled how far the Federal Reserve will hike interest rates as the U.S. economy slows.
What’s happening
-
The yield on the 2-year Treasury
TMUBMUSD02Y,
2.885%
rose 6.9 basis points to 2.906%. Yields move in the opposite direction to prices. -
The yield on the 10-year Treasury
TMUBMUSD10Y,
2.893%
advanced 1.4 basis points to 2.908%. -
The yield on the 30-year Treasury
TMUBMUSD30Y,
3.116%
rose 1.1 basis points to 3.129%.
What’s driving markets
The U.S. benchmark 10-year yield is down more than 50 basis points from the multi-year peak touched in mid-June, after worries about inflation turned into concerns about economic growth.
The market is fearful that the Federal Reserve’s battle to suppress price rises — by quickly…
