NEW YORK, July 18 The spread on U.S. two-year
interest rate swap rate over two-year U.S. Treasuries yield
turned tighter early Friday after touching its widest level
since August 2012, Tradeweb data showed.
This yield gap has widened this week due to investor
nervousness how soon the Federal Reserve might raise short-term
U.S. interest rates. Anxiety intensified on Thursday due to news
of a Malaysian jet that was shot down over Ukraine and Israeli
military move into Gaza.
The two-year swap spread was last quoted at
19.25-19.75 basis points, 0.25 basis point tighter than late on
Thursday. It was quoted as 19.75-20.25 basis points earlier in
(Reporting by Richard Leong Editing by W Simon)