NEW YORK, July 18 (Reuters) - 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 Friday’s session. (Reporting by Richard Leong Editing by W Simon)