(Bloomberg) -- Treasury yields rose across the curve with those with shorter maturities leading the increase as a flight-to-safety bid that had overtaken the market late last week slowed after Russia’s Foreign Minister Sergei Lavrov proposed to continue talks with the west.
Two-year Treasury yields rose Monday over five basis points to about 1.55%, while rates on other tenors were up at least as much as a basis points. Two-year yields fell nearly 8 basis points on Friday after U.S. officials warned that Russia soon could take military action against Ukraine, sending investors shifting cash into the safety of U.S. Treasuries.
Monday’s rebound in yields also kicked in a resumption of curve flattening with the gap between 2- and 10-year yield falling almost 4 basis points to about 40.5 basis points.
Vladimir Putin’s top diplomat urged the Russian president to continue talks with the West, with negotiation options “far from exhausted.” German Chancellor Olaf Scholz, who arrived in Kyiv on Monday, is due to fly to Moscow for talks the next day.
Putin Signals Talks With U.S., NATO to Continue Amid Crisis (1)
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
