U.S. Treasury yields rose on December 12, 2024, driven by weak demand for 30-year bonds and concerns over the expanding budget deficit. The 5s30s yield spread widened, with yields on various maturities increasing by 3-7 basis points. The 10-year Treasury yield climbed over 5 basis points to approximately 4.33%, the highest since late November. This rise in yields was further fueled by higher-than-expected unemployment claims and mixed Producer Price Index (PPI) data, which contributed to a steeper yield curve. Additionally, the U.S. budget deficit reached $367 billion in November, a 17% y/y increase, highlighting fiscal challenges and influencing market sentiment.
The BondBloxx Bloomberg Three Year Target Duration US Treasury ETF (XTRE) closed at $48.95, reflecting a 0.12% decline from the previous day.