US Treasury Yield Spread Widens to 0.38 Percentage Points
The 10-year minus 2-year Treasury yield spread rose slightly as broader economic data shows persistent price pressures.
**Coverage:** Fresh at 2026-07-09: 10-Year Treasury Minus 2-Year Treasury Yield Spread. Latest available but older: Personal Consumption Expenditures Price Index, Real GDP, % Change from Preceding Period, Average Hourly Earnings, Total Private (SA), CPI-U, All Items (NSA), CPI-U, All Items (SA), CPI-U, All Items Less Food & Energy — Core CPI (SA), JOLTS Job Openings, Total Nonfarm (SA), PPI Final Demand (SA), Total Nonfarm Payroll Employment (SA), Unemployment Rate (SA), Advance Monthly Retail Sales, Total (ex. auto/gas categories vary), New Residential Construction, Housing Starts (Total), 10-Year Treasury Constant Maturity Rate, 2-Year Treasury Constant Maturity Rate, Effective Federal Funds Rate, ICE BofA US High Yield Index Option-Adjusted Spread.
The 10-Year Treasury Minus 2-Year Treasury Yield Spread rose to 0.38 percentage points on July 9, a 0.03 percentage point increase from the previous day. This shift follows a period of higher yields, with the 10-Year Treasury Constant Maturity Rate reaching 4.56% and the 2-Year Treasury Constant Maturity Rate hitting 4.21% as of July 8 [13, 15].
Inflationary pressures remain evident across BLS metrics. The seasonally adjusted CPI-U for all items rose 0.5% in May, while the Core CPI increased 0.2%. Producer prices showed a sharper jump, with the PPI Final Demand increasing 2.6% over the previous month.
Labor market data from the BLS indicates a tightening trend. The unemployment rate fell 0.10 percentage points to 4.2% in June, and average hourly earnings rose 0.3% to 37.64 dollars per hour. Total nonfarm payroll employment grew by 57,000 persons in the same period.
Activity in the broader economy is mixed. Census data shows May retail sales grew 0.9% to 763.7 billion dollars, though housing starts dropped 15.4% to 1.177 million units. The BEA reported that Real GDP grew 2.1% in the first quarter of 2026, while the Personal Consumption Expenditures Price Index rose 0.4% in May.