Reuters

TREASURIES-U.S. five to 30-year yield curve inverts for first time since 2006

Dhara Ranasinghe
Mon, March 28, 2022, 4:16 AM

(Adds forward curve inversion, comment, updates prices)

By Dhara Ranasinghe

LONDON, March 28 (Reuters) - The U.S. yield curve measured by the gap between five and 30-year government bond yields inverted on Monday for the first time since early 2006 as a sell-off in the market resumed, with short-dated bond yields jumping to their highest since 2019.

While parts of the yield curve, namely five to 10 and three to 10 years, inverted last week, the slide of the gap between five- and 30-year maturities of the biggest bond market in the world into negative territory raised concerns the U.S. central bank's hawkish approach to tackling inflation might hurt growth.

"That is exactly what the bond market is pricing: that the Fed's policy response is going to put the brakes on economic growth sharply," said Peter Chatwell, head of multi-asset strategy at Mizuho Bank in London.

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