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Treasury yield curve flattest since August 2007 after Fed raises interest rates


The yield curve for U.S. government bonds flattened after the Federal Reserve raised its benchmark fed-funds rate by a quarter percentage point to a range of 1.75% to 2%. The yield spread between the 2-year note yield TMUBMUSD02Y, +0.33% and the 10-year note yield TMUBMUSD10Y, -0.06% , a popular gauge of the yield curve's slope, narrowed by one basis point to 40 basis points, or a 0.40 percentage point, the tightest since Aug. 2007. While, the spread between the 5-year note yield TMUBMUSD05Y, +0.00% and the 30-year bond yield TMUBMUSD30Y, +0.05% narrowed by 3 basis points to 25 basis points, or a 0.25 percentage point, also the tightest since Aug. 2007. Bond prices fall as yields climb. Because