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6 Feb 2015
Yield curve flattens after strong US jobs report
FXStreet (Mumbai) - The Treasury yields shot higher after the data in the US showed the labor market growth rose solidly in January coupled with a sharp rise in the average weekly earnings.
Yield curve flattens
The 10-year treasury yield jumped to 1.894 % from 1.81% before the report and 30-year bond yields increased to 2.472%, from 2.41%. Meanwhile, the 2-year yield rose to 0.608% from 0.53%, its highest since Jan.9, while the 1-year yield rose to 0.243%. Moreover, The yield curve between five-year notes and 30-year bonds flattened to 106 basis points, from 112 basis points before the report.
Furthermore, the interest rate futures market now see a 55% chance that the Fed would raise interest rates in September 2015, up from the 48% prior to the jobs report.
Yield curve flattens
The 10-year treasury yield jumped to 1.894 % from 1.81% before the report and 30-year bond yields increased to 2.472%, from 2.41%. Meanwhile, the 2-year yield rose to 0.608% from 0.53%, its highest since Jan.9, while the 1-year yield rose to 0.243%. Moreover, The yield curve between five-year notes and 30-year bonds flattened to 106 basis points, from 112 basis points before the report.
Furthermore, the interest rate futures market now see a 55% chance that the Fed would raise interest rates in September 2015, up from the 48% prior to the jobs report.