For the first time in nearly four years, the yield on 20-year US Treasury bonds closes below that of 30-year Treasuries

According to Jinse Finance, the yield on the US 20-year Treasury closed below that of the 30-year Treasury on Monday, marking the first time in nearly four years and reflecting a partial normalization of the long end of the US Treasury yield curve. The continued rise in long-term Treasury yields is driven by market expectations that the Federal Reserve will begin cutting interest rates, coupled with bets that an expanding fiscal deficit will lead to increased Treasury supply. On Monday, the yield on the longest-maturity US Treasury—the 30-year bond—was slightly higher than that of the 20-year bond in late trading, the first occurrence since October 2021. On Tuesday, the 30-year Treasury yield remained less than one basis point higher than the 20-year yield. In 2022, the Federal Reserve’s rate hike cycle pushed yields on all maturities of US Treasuries higher, with the 20-year yield at one point exceeding the 30-year yield by as much as 30 basis points.