Yield on 30-Year Treasuries Tumbles as Curve Continues to Flatten
Long-term Treasury yields spiraled lower and sparked the biggest two-day narrowing on the yield curve since March 2020. The move came after Federal Reserve officials pulled forward their signal for when monetary policy tightening could start, helping to rein in the risk that inflation might become unmoored. The 30-year bond yield fell as much as 16 basis points to 2.05% Thursday, its lowest level and biggest intraday drop since February. The plunge in long-end yields comes after new forecasts released Wednesday by central bank officials indicated two rate hikes by the end of 2023, a shift that’s driven up market rates in shorter maturities and put a check on longer-term inflation expectations. The combined flattening since the close on Tuesday was the most since the peak of the liquidity crisis last year. That dynamic also saw the yield curve, as measured by the gap between 5- and 30-year debt yields, driven to as little as 117 basis points, a level unseen since Novem...