Treasuries - US yields extend gains as investors weigh Iran conflict
TLT•Benchmark yields and inflation expectations move higher
The yield on the benchmark U.S. 10-year Treasury note US10YT=RR was last up 3.2 basis points to 4.728%. The yield on the 30-year bond US30YT=RR rose 4.8 basis points to 5.314%, its highest level in nearly 20 years.
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 54.7 basis points.
The two-year US2YT=RR U.S. Treasury yield, which typically moves in step with interest rate expectations for the Fed, rose 0.9 basis points to 4.18%.
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 2.284%, indicating the market sees inflation averaging about 2.3% a year for the next decade.
