The Treasury curve went more deeply negative on Wednesday after data showed the U.S. services sector expanded for an eighth straight month in August. The 10-year yield traded well below the policy-sensitive 2-year rate, pushing the spread between the two to minus 74 basis points. The moves came as fed funds futures traders slightly nudged up the possibility of a 25-basis-point rate hike by the Federal Reserve this month, and factored in a small chance of another hike of the same size by year-end.
…
Read the full article here