U.S. Bond Market: Early gains in government bonds fade, and the yield curve slightly flattens.

MaticHoleFiller · 2026-04-08T08:29:42+00:00

On Wednesday, the U.S. Treasury yield curve experienced a slight flattening and inversion. During the morning session, the rise in Treasury prices earlier was reversed due to robust economic data and a large sell-off of 2-year Treasury futures. Throughout the day, yields across all maturities fluctuated within two basis points compared to Tuesday’s close, with the 10-year Treasury essentially unchanged, serving as the pivot of the entire curve.The long end performed slightly better, with yields marginally declining for the day, while the short and intermediate segments lagged, with yields rising nearly 2 basis points, narrowing the 5/30-year spread by 2 basis points.Most of the decline in Treasury prices occurred around the release of February retail sales data. The strong data intensified selling momentum, erasing earlier gains and pushing yields back toward levels close to flat for the day.During the U.S. late trading session, WTI crude oil futures

MaticHoleFiller

2026-04-08 08:29:42

On Wednesday, the U.S. Treasury yield curve showed a slight twist and leveling-off. During the U.S. morning session, a firm set of economic data and a large sell order in the 2-year Treasury futures contract caused the earlier rally in Treasuries to fade. Looking at the full day, yields across most maturities closed with swings of generally within two basis points versus Tuesday’s close; the 10-year Treasury was basically unchanged, becoming the pivot point of the entire curve.

Longer-maturity performance was slightly better: yields edged down on the day, while the short end and the belly lagged. Yields rose by nearly 2 basis points on the day, narrowing the 5-year/30-year spread by 2 basis points.

Most of the decline in Treasuries occurred around the release of February retail sales data. Strong figures intensified selling pressure, reversing the earlier gains and pushing yields back to levels close to unchanged on the day.

In the U.S. late-session, WTI crude oil futures fell by about 1.5%. Ahead of U.S. President Trump’s scheduled 9:00 p.m. ET address, in which he will provide an “important update” on Iran, oil prices traded in a choppy range.

During the U.S. morning session, the Treasury options market saw a bullish trade, betting that the 10-year Treasury yield would fall to around 4.1% within three weeks; the options premium was about $8 million.

2-year Treasury futures slid to their intraday low after a large block sell order for that maturity appeared in the morning.

U.S. Eastern Time 4:30 p.m.

The 2-year Treasury yield was 3.8072%.

The 5-year Treasury yield was 3.9637%.

The 10-year Treasury yield was 4.3285%.

The 30-year Treasury yield was 4.9121%.

The 5-year and 30-year Treasury yield spread was 94.84 basis points.

The 2-year and 10-year Treasury yield spread was 51.93 basis points.

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Byline: Li Tong

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