SPTL - Treasury yields spike; US2Y jumped above 5% and the US10Y climbed above 4%

2023-07-06 08:57:27 ET

U.S. Treasury yields jumped higher on Thursday morning after a stronger than expected ADP jobs report, which sent the U.S. 2 Year Treasury yield ( US2Y ) north of 5% and the U.S. 10 Year Treasury yield ( US10Y ) above 4%.

Early into the trading session, the US2Y advanced 15 basis points to 5.09%, while the US10Y climbed 10 basis points to 4.04%. Moreover, the last time investors saw the US2Y this high was back on June of 2007, while the US10Y has not traded this high since March of 2023.

Supporting the moves higher in yields was the unexpected jump in the ADP jobs report, which came in at 497K versus the expected 228K figure. At the same time Wall Street also watched initial jobless claims tick higher by 12K to 248K compared to the forecasted 245K marker.

Furthermore, the jump in yields, particularly on the shorter end US2Y, has deepened the inverted yield curve further as well, to -1.05%.

Additionally, as Treasury yields draw more attention, so do Treasury-focused exchange traded funds and large-scale bond funds. See below a list of popular large-scale bond and Treasury funds:

• iShares Core U.S. Aggregate Bond ETF ( AGG )
• Vanguard Total Bond Market Index Fund ETF Shares ( BND )
• Direxion Daily 20+ Year Treasury Bull 3X Shares ( NYSEARCA: TMF )
• iShares 20+ Year Treasury Bond ETF ( NASDAQ: TLT )
• SPDR Portfolio Long Term Treasury ETF ( SPTL )
• Vanguard Long-Term Treasury ETF ( VGLT )
• iShares 10-20 Year Treasury Bond ETF ( TLH )
• iShares 7-10 Year Treasury Bond ETF ( IEF )
• iShares U.S. Treasury Bond ETF ( GOVT )
• Vanguard Intermediate-Term Treasury ETF ( VGIT )
• Schwab Intermediate-Term U.S. Treasury ETF ( SCHR )
• iShares 3-7 Year Treasury Bond ETF ( IEI )
• iShares 1-3 Year Treasury Bond ETF ( SHY )
• Schwab Short-Term U.S. Treasury ETF ( SCHO )
• iShares Short Treasury Bond ETF ( SHV )
• SPDR Bloomberg 1-3 Month T-Bill ETF ( BIL )

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