U.S. Treasury futures fall after reports of U.S. sending dozens more aerial tankers to Israel
U.S. Treasury futures fell as the yield curve continued to flatten. The United States is reportedly sending dozens of additional aerial tankers to Israel on the eve of a possible escalation of military operations. The day's decline was mainly concentrated at the front end of the yield curve, pushing the 2-year/10-year and 5-year/30-year Treasury bond yield spreads to narrow by about 3 basis points and 2 basis points respectively, both hitting intraday lows. U.S. 2-year Treasury yields rose about 2 basis points from Thursday's close, while long-term Treasury yields edged lower. Overnight index swaps (OIS) linked to the Federal Reserve meeting show that the market has priced in a premium of about 4 basis points for interest rate hikes at the July meeting, which is basically the same as earlier in the day; the market expects a cumulative interest rate hike of about 30 basis points by December, higher than the 27 basis points expected at the close of Thursday. Open a futures account on Sina's cooperative platform, safe, fast and guaranteed