December 4, 2018 / 7:29 AM / in 6 months

German 2s/10s yield spread tightest since June 2017 as U.S. curve flattens

LONDON, Dec 4 (Reuters) - The gap between Germany’s two-year and 10-year bond yield was at its tightest in 17 months as parts of the U.S. Treasury yield curve inverted overnight on worries over inflation and economic growth in the world’s largest economy.

The German 2-yr/10-yr bond yield spread tightened to 89 basis points, after the spread between 2-year and 10-year U.S. Treasury yields overnight was at its tightest level in 11 years at 14 bps.

Two-year U.S. Treasury yields rose above five-year yields for the first time in over a decade.

German bund futures opened 41 ticks higher at 161.91 and the German 10-year bond yield hit a 4-1/2 month low of 0.279 percent. (Reporting by Abhinav Ramnarayan; editing by Josephine Mason)

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