Treasuries-US yields rise amid Iran worries, broader selloff
TLT•Treasury curve and inflation breakevens
Meanwhile, the Federal Reserve reported that July growth in U.S. industrial production had cooled by a tenth of a percentage point to 0.2%, undershooting economists' expectations in part due to a decline in production of consumer goods.
The yield on the benchmark U.S. 10-year Treasury note US10YT=RR was last up 2 basis points to 4.744%. The yield on the 30-year bond US30YT=RR rose 1.3 basis points to 5.323%.
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 54.4 basis points.
The two-year US2YT=RR U.S. Treasury yield, which typically moves in step with interest rate expectations for the Fed, rose 1.6 basis points to 4.198%.
The breakeven rate on five-year U.S. Treasury Inflation-Protected Securities US5YTIP=TWEB was last at 2.268% after closing at 2.253% on August 17.
The 10-year TIPS breakeven rate US10YTIP=TWEB was last at 2.297%, indicating the market sees inflation averaging about 2.3% a year for the next decade.
