Treasuries-US yields ease with oil prices, day after Fed raises rates

The 10-year Treasury yield, which rose above 5.00% earlier this week for the first time since 2023, was last down 5.7 basis points at 4.947%. The yield on the 30-year bond fell 4.7 basis points to 5.301%.

A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, seen as an indicator of economic expectations, was at a positive 26.6 basis points.

The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations for the Fed, was down 4.8 basis points at 4.679%.

The breakeven rate on five-year U.S. Treasury Inflation-Protected Securities was last at 2.322% after closing at 2.353% on September 16.

The 10-year TIPS breakeven rate was last at 2.305%, indicating the market sees inflation averaging about 2.3% a year for the next decade.