U.S. long-dated Treasury yields fell to their lowest level in nearly two weeks on Wednesday on growing anticipation of a short-term interest rate hike by the Federal Reserve. Weakness in U.S. stocks and oil prices also helped fuel demand for the Treasury bonds.
Yields on 30-year Treasury bonds hit 3.03 percent, their lowest level since July 9 and also showed the biggest decline on the day of about four basis points. The benchmark 10-year yields also hit their lowest since that date at 2.3 percent.
Analysts said the flattening of the yield curve, which showed investors pushing yields on long-dated bonds lower and short-dated bonds slightly higher, was a reaction to increased expectations that the Fed could be hiking rates soon.
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