- US Treasurys are surging following an ABC News report suggesting that Michael Flynn will testify that President Donald Trump told him to contact Russians.
- No other media outlet has been able to confirm the report.
- Flynn, the former national security adviser, was charged Friday with one count of making false statements to federal investigators.
- He pleaded guilty to the charge and is cooperating with the investigation.
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Treasurys surge following report Flynn is set to testify against Trump
The 2-10-year spread is near its flattest level since 2007.
Heavy buying across the Treasury complex has yields sharply lower — especially at the long end of the curve. Here's a look at the scoreboard as of 11:55 a.m. ET:
- 2-year
- 3
- year
- 5-year
- 7-year
- 10-year
- 30-year
Friday's buying has longer-dated yields nearing the lower bound of the range that has been in place since the beginning of October. The benchmark 10-year yield has spent much of the past two months locked between 2.30% and 2.40%.
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However, yields are still sharply higher from their early-September levels as traders dumped their holdings in anticipation tax cuts would pass through Congress. The benchmark 10-year yield was threatening a break below 2% before the selloff.
Aggressive flattening along the yield curve has the 2-10-year spread tighter by 4.5 bps near 58 bps. It's near its flattest level since 2007.
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