Both the US 10 and 30-year yields are stretching to new highs.
- The 10-year yield has just reached 4.535%. The low for the day was 4.45%. The new high represents the highest level since October 2007.
- The 30 year yield just reached 4.653%, which is the highest level since January 2011
As the market transitions to “higher for longer”, some of the negative yield curve is being taken out of the market.
The 2 – 10 year spread is down to around -59. That is still well negative and below the lowest level going back to 1989 before 2022 between -51 pips to -47 pips. There is still a long way to go to a positive yield curve.
2-10 year yield is -59 pips now
The spread between the 2 year and the thirty-year is at -48 pips. At least for that spread, it is now back above the1989 and 2000 year lows Those levels came between -79.5 pips and -68.7 pips. Having said that, it is still nearly 50 basis points from being positive.
2-30 year spread
It makes you wonder when, and at what levels will the 2, 10, and 30 year yields will be at, when the yield curve finally turns back into positive territory.
The 2 year yield today is up too, but only by 1.5 basis points to 5.137% currently.