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2s Underperforming Amid Short-End Selloff

GILTS

Amid broader short-end UK weakness, 2Y yields have just pushed to a fresh post-2008 high at 2.623%, up nearly 4bp since DMO said 20 minutes ago it was considering a 2 or 3Y Gilt tender Thursday. Latest levels:

  • This has exacerbated bear flattening in the curve through the 10Y segment: 2-Yr yield is up 9.9bps at 2.624%, 5-Yr is up 9.2bps at 2.368%, 10-Yr is up 8.9bps at 2.5%, and 30-Yr is up 11.6bps at 2.83%.

2Y UK Yield Intraday, %Source: BBG

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