6/3/2019, 1:49 PM (Source: TeleTrader)
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Two-year Treasuries spike on rate cut bets

Debt securities issued by the Department of the Treasury in Washington traded higher on Monday, where the two-year notes soared and knocked yields to new lows. The movement resulted in a steepening of the yield curve. It has lately been inverting, which increased concern among market participants that a recession in the United States could be imminent.

The two-year note yield plunged 6.4 basis points to 1.876% at 7:48 am ET. Earlier it touched 1.844% for the first time in almost a year and a half. The measure is especially tracked against the effective borrowing costs in the Federal Reserve's range. It has been holding in the vicinity of 2.4% or more than two standard moves in the central bank's benchmark above the market level, as bets on a decrease have strengthened.

The benchmark ten-year rate was down 1.1 points to 2.119%. The session low, 2.074%, was the weakest level on a closing basis since September 8, 2016. The yield on the 30-year bonds only slipped 0.4 points to 2.565%. Corresponding futures prices advanced 0.08%, 0.09% and 0.12%, respectively.

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