Treasuries-U.S. yields head lower after Treasury offers liquidity support
TLT•Treasury yields and inflation expectations
The yield on the benchmark U.S. 10-year Treasury note US10YT=RR was last down 4.9 basis points to 4.655%. The yield on the 30-year bond US30YT=RR fell 8 basis points to 5.205%.
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 47.4 basis points.
The two-year US2YT=RR U.S. Treasury yield, which typically moves in step with interest rate expectations for the Fed, rose 0.6 basis points to 4.181%.
The breakeven rate on five-year U.S. Treasury Inflation-Protected Securities (TIPS) US5YTIP=TWEB was last at 2.287% after closing at 2.288% on August 18.
The 10-year TIPS breakeven rate US10YTIP=TWEB was last at 2.307%, indicating the market sees inflation averaging about 2.3% a year for the next decade.
