Bond yields fell on Monday, retracing some of the sharp bounce delivered by Friday’s much stronger-than-expected U.S. jobs report, as investors await the next major inflation report.Meanwhile, the spread between 2- and 10-year yields narrowed to an intraday low of almost minus 43 basis points.What’s happening
The yield on the 2-year Treasury
slipped to 3.181% from 3.248% as of Friday afternoon. Yields move in the opposite direction to prices.
The yield on the 10-year Treasury
retreated to 2.782% versus 2.838% on Friday.
The yield on the 30-year Treasury
fell to 3.007% versus 3.065% on Friday.
Last week, the 2-year rate jumped 35.1 basis points for its biggest weekly gain since June; much of that advance took place on Friday. Meanwhile, the 10-year rate posted a 19.6 basis point gain last week and the 30-year rate jumped 8.9 basis points for the week.
As of Monday, the 10-year to 2-year spread appeared poised to shrink to its deepest level below zero since August 2000, based on 3 p.m. levels, according to Dow Jones Market Data — signaling the bond market expects an economic downturn.
What’s driv …