US Treasury yields climb in pre-market trading, 10-year touches 5.125%
The 2-10 spread widens to 35.7 basis points as the curve steepens again
Published
Chart: US10Y, US 10-year Treasury yield, one-minute prices, three sessions
US Treasury yields rose in pre-market trading on Friday, with the 10-year yield at 5.125%, the 30-year yield at 5.458% and the 2-year yield at 4.766%. The 2-10 spread widened to 35.7 basis points.
The rise reverses part of Thursday's sharp pullback, when the 10-year yield fell 11 basis points to 5.08%, breaking an uninterrupted climb. That climb had taken the 10-year yield from 5% in mid-September to 5.27% by month-end, while the 30-year yield pushed to multi-decade highs near 5.70% to 5.80%. That run was described as a structural repricing, and bond buybacks failed to contain it.
Friday's move puts the 10-year yield and the 30-year yield roughly back in the range that defined the September selloff. The widening 2-10 spread shows the curve steepening again, with short rates lagging the move, a pattern consistent with the long-end repricing seen in late September. If this renewed climb persists rather than proving another one-day swing, it revives the discount-rate pressure on equity valuations that characterized that prior run.