The U.S. 20-year Treasury yield closed below the 30-year Treasury for the first time in nearly four years

US 20-year Treasury yields closed below 30-year yields on Monday for the first time in nearly four years, reflecting a return to some normalcy at the long end of the yield curve. Long-term yields continued to rise on expectations that the Federal Reserve will start cutting interest rates and bets that a widening fiscal deficit will lead to an increase in the supply of Treasuries. On Monday, the yield on the longest-dated US Treasury, the 30-year Treasury, was trading slightly above the 20-year yield for the first time since October 2021. On Tuesday, the 30-year Treasury yield was still less than a basis point above the 20-year yield. In 2022, the Federal Reserve's interest rate hike cycle promoted the yield of all maturities of US Treasury bonds to rise, and the yield of 20-year Treasury bonds was once as much as 30 basis points higher than that of 30-year bonds.