Originally posted at >>>/midnightriders/26152 (182125ZDEC20) Notable: TREASURIES-Yield curve steepest in three years as market awaits COVID-19 stimulus, MISSING MEDIA/FILES: pepe_of_wall_street.png, 121820_Mkt_closed_Quad_witch_expiry.png, 10year_T_note_weekly_close_121820.png, US_Treasury_Steepening_Yield_curve_121820.png, 121820_WTI_weekly_close.png
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TREASURIES-Yield curve steepest in three years as market awaits COVID-19 stimulus
Note the volume on panel 2-Quad Witch expiry today.
The Treasury yield curve steepened on Friday to its highest since February 2018 as investors waited to see whether the U.S. Congress would agree on $900 billion in fresh COVID-19 relief by the end of the day.
The spread between the two- and 10-year yields , the most common measure of the yield curve, rose as high as 82.7 basis points on Friday afternoon, its steepest in three years. The spread between the five- and 30-year yields also widened, but only to its highest since Dec. 7. The yield curve broadly has steepened this week on stimulus and vaccine optimism, as well as the Federal Reserve’s decision on Wednesday to maintain its current pace and duration of bond buying, which pushed longer-dated yields higher. A recent move higher in longer-dated yields sparked debate over whether the Fed would alter its Treasury purchases to cap yields. The 10-year yield was last up 1.3 basis points at 0.943%. The 30-year yield rose 1.8 basis points to 1.693%. The short end of the curve dipped, with the two-year yield last down 0.4 basis point at 0.123%.
Oil futures score a 7th straight weekly gain
Oil futures climbed on Friday and marked a weekly gain for a seventh consecutive session. Crude prices rose as Moderna Inc.'s MRNA, -2.62% COVID vaccine is poised to get vaccine authorization from the U.S. Food and Drug Administration, said Edward Moya, senior market analyst at Oanda. However, "successful vaccine execution" is what is needed to send U.S. benchmark crude prices well above the $50 level and "that is unlikelyPost too long. Click here to view the full text.