Treasuries Extend Decline as 30-Year Yield Returns to 24-Year High

Deep News
11小时前

US Treasuries declined during the US trading session, with the long end of the yield curve leading losses and pushing the 30-year yield above last week's high to return to its highest level since 2002.

Some buying emerged late in the day, pulling yields back from their intraday peaks, but long-end yields still rose by about 5 basis points, resulting in a bear steepening of the curve.

There was a lack of fresh catalysts during the session, though duration risk events this week include the 10-year and 30-year Treasury auctions scheduled for Wednesday and Thursday, respectively.

Just after 3 PM New York time, Treasury yields across maturities rose between 1 and 5 basis points, with the 2s10s and 5s30s spreads widening by about 4 basis points and 3 basis points intraday, respectively.

The 10-year Treasury yield ended the session up about 4 basis points; through the London close, German bund and UK gilt yields posted similar increases.

Most of the Treasury decline occurred during the US morning session, with both the 10-year and 30-year yields breaking above last week's highs to reach 5.35% and 5.7%, respectively.

US stocks advanced as oil prices fell, supported by gains in technology shares.

In the Treasuries options market, flows were active during the US morning session, with one notable trade being a large sale of 10-year put options for a premium of $95 million, suggesting an August trade could yield a profit of $74 million.

As of 3 PM New York time, Treasury futures volumes were at about 80% of the 20-day average.

As of 3:58 PM Eastern time, the 2-year Treasury yield fell 0.6 basis points to 4.8184%; the 5-year Treasury yield rose 0.7 basis points to 5.0607%; the 10-year Treasury yield rose 4 basis points to 5.311%; the 30-year Treasury yield rose 4.6 basis points to 5.6656%; the spread between 5-year and 30-year Treasury yields widened by about 3.8 basis points to 60.31 basis points; and the spread between 2-year and 10-year Treasury yields widened by about 4.9 basis points to 49.05 basis points.

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