Treasury yield curve steepens on oil price recovery

The long duration treasury yields edged higher slightly on Thursday on the back of a modest recovery in oil prices. Meanwhile, the short duration yields remained under pressure on speculation of a slower Fed rate hike path. 

The 30-year yield hit a 7-month low of 2.713% before recovering to 2.73%. The slight uptick was due to the recovery in oil prices. As per Reuters report, the rise in the yields also occurred as traders prepared for a 30-year Treasury Inflation-Protected Securities (TIPS) auction. 

The yields are flat lined in Asia. The 10-year yield was last seen trading around 2.156%. The 2-year yield and the 5-year yield were flat lined around 1.352% and 1.767%, respectively.