0604 GMT - There are so many unusual bond market characteristics these days, and one of them is a major divergence in the moves of front-end and long-end rates in the U.S., says MFS Investment Management's Benoit Anne in a note. Two-year Treasury yields have fallen 8 bps while the 10-year Treasury yields have increased 22 bps since end-March, says the senior managing director. "That sort of correlation breakdown is not common," he says. "The last time that the correlation was so low between the two-year and the 10-year yields was back in 2022, under a substantially different monetary policy regime," he says. At the time, front-end rates were running the show, reflecting the hawkish signals from the Federal Reserve, he says. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
April 24, 2025 02:04 ET (06:04 GMT)
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