TREE NEWS reports: US Treasury yields fell on Thursday, with the 2-year note down 3.5 basis points to 4.3339%, extending a two-day decline. The 10-year yield slipped 1.2 bps to 4.7660%, after hitting a low of 4.73%. The 2s10s curve steepened to +43.003 bps. Real yields also declined across maturities.
US 2-yr Treasury yield down 3.5 bps at 4.3339%
The continued slide in short-term yields, alongside a steeper curve, signals market repricing of near-term rate expectations rather than a broad risk-off move. The fact that real yields are falling too suggests inflation compensation is holding up, which could be read as confidence in the Fed's path. The open question is whether this two-day drift marks a turning point or just positioning ahead of upcoming data.
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