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U.S. Treasury yields have made a notable climb higher this week after Wall Street received hotter inflation data in the form of the consumer price index report and the producer price index report. The yield curve inversion between the US2Y and US10Y have also now hit its longest consecutive streak of days of being inverted.
Dating back to last Friday (March 8), the shorter end U.S. 2 Year Treasury yield (US2Y) jumped up 32 basis points from 4.41% to 4.72%. At the same time the story was the same for the longer end U.S. 10 Year Treasury yield (US10Y) as it advanced 29 basis points from 4.03% to 4.32%.
Both the US2Y and US10Y are now knocking on the door of their 2024 highs which were both set back in February. For the US2Y, a move above 4.76% which is 4 basis points away would mark a 2024 high and a high that has not been seen since December 11. The 10Y is also pushing for a new high as it needs to crack above 4.35%, just 3 basis points above its current level and it will top a new 2024 high and a high not experienced since November 30.
Furthermore, the inverted yield curve continues its trend now surpassing a new record of consecutive days being inverted. “The 2y10y Treasury yield curve spread has been inverted for [423] consecutive trading days, which puts it ahead of the 1978-80 inversion for the longest ever," Daily Chartbook stated. See the chart below that was constructed by the research firm:
As the yield curve remains inverted and upward pressure is seen across the curve a direct result of the moves can be seen across prominent fixed income and Treasury focused exchange traded funds as yields and bond prices move in opposite parallels. See a group of fixed income ETFs that investors can further monitor as yields advance:
- Vanguard Total Bond Market ETF (NASDAQ:BND)
- iShares Core U.S. Aggregate Bond ETF (NYSEARCA:AGG)
- Vanguard Total International Bond ETF (BNDX)
- iShares 20+ Year Treasury Bond ETF (TLT)
- iShares 10-20 Year Treasury Bond ETF (TLH)
- iShares 7-10 Year Treasury Bond ETF (IEF)
- iShares 3-7 Year Treasury Bond ETF (IEI)
- iShares 1-3 Year Treasury Bond ETF (SHY)
Additionally, see how other yields trade across the entire yield curve here.
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