US yield curve flattens as Fed sees strong growth

US yield curve flattens as Fed sees strong growth thumbnail
NEW YORK: The gap between U.S. shorter- and longer-dated yields narrowed on Thursday as Federal Reserve officials said they saw strong economic activity, which would allow them to raise interest rates gradually with the next hike seen likely in December.

The flatter yield curve reflects traders’ view of rising short-term rates and long-term inflation staying tame. At 2:10 p.m. ET (1910 GMT), the spread between five-year and 30-year Treasury yields contracted by 2 basis points to 33.90 basis points.



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