The yield on the US 2-year Treasury note surged to its highest level in nearly three weeks, driven by strong services-sector data released on Monday. The yield on the 10-year and 30-year Treasuries also made significant gains, as long-term government debt experienced its worst week of the year.
According to the S&P flash U.S. services PMI, the economy expanded at its fastest pace in over three years in December, with companies optimistic about the incoming Trump administration’s business-friendly stance. This led to a jump in the services PMI from 56.1 in November to 58.5 in December, surpassing economists’ median estimate of 55.3.
The strong services data contributed to market volatility, leading investors to seek safer assets. The 2-year Treasury yield rose significantly, ending its biggest weekly advance since October 20, 2023. This growth is a response to the recent uptick in long-term government debt, which had capped off its worst week of this year.
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Source: https://www.marketwatch.com/story/treasury-yields-slip-from-highest-levels-since-november-as-buyers-emerge-92493472