Treasuries-US yields edge higher, little moved by stalled Iran developments
TLT•Yields and inflation expectations
The yield on the benchmark U.S. 10-year Treasury note US10YT=RR was last up 0.4 basis points to 4.7%. The yield on the 30-year bond US30YT=RR rose 1.3 basis points to 5.279%.
A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes US2US10=TWEB, seen as an indicator of economic expectations, was at a positive 53.3 basis points.
The two-year US2YT=RR U.S. Treasury yield, which typically moves in step with interest rate expectations for the Fed, fell 0.8 basis points to 4.163%.
The breakeven rate on five-year U.S. Treasury Inflation-Protected Securities (TIPS) US5YTIP=TWEB was last at 2.255% after closing at 2.249% on August 14.
The 10-year TIPS breakeven rate US10YTIP=TWEB was last at 2.289%, indicating the market sees inflation averaging about 2.3% a year for the next decade.
U.S. Treasuries little changed as investors watch Iran, Fed minutes
WASHINGTON, Aug 17 (Reuters) - U.S. Treasuries were little changed on Monday morning, as investors eyed the U.S.-Iran conflict, where diplomatic efforts appear stalled, and crude prices held on to last week's gains ahead of a week with few major economic indicators to move markets.
Investors on Wednesday will also be watching the release of the minutes from the Federal Reserve's most recent policy meeting and an auction of 20-year U.S. bonds. Meanwhile a survey of manufacturing activity in the Federal Reserve's New York region jumped to its highest reading in more than four years.
Lou Brien, market strategist at DRW Trading, said markets were becoming inured to the protracted instability from the U.S.-Iran conflict and the countrys' mutual threats.
"I think we're getting to the point where we're a little bit dulled by the overly expressive headlines," said Brien.
