The yield on the 20-year U.S. Treasury bond closed below that of the 30-year Treasury bond for the first time in nearly four years.

Jin10 Data, July 8 - The yield on the 20-year U.S. Treasury bond closed below that of the 30-year Treasury bond on Monday, marking the first time in nearly four years, reflecting a degree of normalization in the long end of the U.S. Treasury yield curve. Long-term Treasury yields have been rising due to market expectations that the Federal Reserve (FED) will begin to cut interest rates, while bets on an expanding fiscal deficit will lead to an increase in Treasury supply. On Monday, the longest-dated U.S. Treasury bond - the 30-year Treasury yield - traded slightly higher than the 20-year yield in the last moments of trading, marking the first time since October 2021. On Tuesday, the 30-year Treasury yield was still less than one basis point higher than the 20-year yield. In 2022, the FED’s rate hike cycle pushed yields on Treasuries of all maturities higher, with the 20-year Treasury yield once exceeding the 30-year yield by as much as 30 basis points.