Yields on US Treasuries climbed across the curve, reversing recent relief from liquidity operations amid August PMI distractions.
US Treasury yields rose yesterday, steepening the curve in a bearish move. The 2-year yield increased by 2.5 bps, while the 30-year yield climbed 5.7 bps, nearly erasing gains from recent liquidity-boosting buyback operations.
The shift followed August global PMI surveys, which drew market attention. Earlier, the US Treasury’s announcement to expand liquidity-providing buybacks at longer maturities had temporarily eased pressure on yields.
The yield curve’s bear steepening reflects investor sentiment amid mixed economic signals and shifting expectations for monetary policy.