LONDON, April 18 (Reuters) - The gap between short-dated bond yields in the United States and Germany was on Wednesday at its widest in almost 30 years, reflecting a divergence in monetary policy outlooks between the U.S. Federal Reserve and European Central Bank.
The U.S. two-year Treasury yield rose to a fresh decade high in early European trade, rising to 2.407 percent .
That pushed the gap over short-dated bond yields in Germany, Europe’s biggest economy, to around 298 basis points.
The gap between 10-year U.S. and German bond yields was at widest since late 2016, at around 234 basis points . (Reporting by Dhara Ranasinghe Editing by Raissa Kasolowsky)