Taken together, the yield fall in the two-year Treasury note
along with the slump in the spread between the three-month Treasury yield and the 10-year note (the Fed's preferred inversion metric) raise recession fears among investors.
Investors have been watching the bond market closely for potential inversion of these key yields since the yield on the 10-year Treasury note
fell below the yield on 3-month Treasury bills back in March.
was 1.43%, about 80 points lower than it was a year ago, and the yield on the 30-year Treasury bond was 2.15%, about 100 basis points lower.
By comparison, the existing 10-year US Treasury Note
futures (6.5 to 10-Year), allows for delivery of seven-Year and 10-year US Treasury notes
with remaining terms to maturity at delivery of at least six years six months and not more than 10 years.
10-year Treasury note
jumped lOpercent, from 2.00 percent to 2.20 percent.
Comparing returns available from a Treasury note
to an equal investment in the S&P 500, centered on the 2008-2009 financial crisis, is a salient mechanism to explain basic investment alternatives.
Swap spread refers to the difference between the two-year swap rate and the comparable maturity treasury note
plus an equity premium minus the dividends the company pays.
was down 5/32, with the yield at 3.8876 percent, while the 2-year U.S.
For example, the spread between the interest rate on a 10-year Treasury note
and the federal funds rate has risen recently because the future path of the federal funds rate is expected to go up.
The Prime Minister's spokesman said that a Treasury note
released under the Freedom of Information Act showed that officials and ministers had been looking at the idea since the start of the year.
The total amount issued in Treasury Note
Series RIKB 08 0613 is therefore ISK5.424bn, or EUR57.6m.
Demand for stocks also fell after short-term Treasury note
yields rose above long-term yields for the first time in five years, an event that may signal a slowdown in economic expansion.
The people driving the 10-year Treasury note
market are the Chinese (who hold $710 billion of U.S.