Yield Curve Steepens: 10-Year Hits 4.35%, 30-Year Approaches 5%
The Treasury yield curve steepened in early April, with the 10-year reaching 4.35% and the 30-year climbing to 4.91%. The 2s10s spread has widened to 51 basis points.
The U.S. Treasury yield curve steepened markedly in early April 2026, with longer-dated maturities rising faster than short-term rates. The benchmark 10-year yield hit 4.35% on April 3, while the 30-year bond yield climbed to 4.91% -- its highest level since late 2023.
The spread between 2-year and 10-year yields widened to 51 basis points, reflecting increased term premium as investors demand higher compensation for holding longer-duration debt.
Treasury Yield Curve (April 3, 2026)
| Maturity | Yield |
|---|---|
| 1-Month | 3.71% |
| 3-Month | 3.71% |
| 6-Month | 3.73% |
| 1-Year | 3.72% |
| 2-Year | 3.84% |
| 5-Year | 3.99% |
| 10-Year | 4.35% |
| 30-Year | 4.91% |
Curve Shape
The curve is normally sloped across all maturities -- short rates clustered tightly between 3.71% and 3.73%, then rising steadily through the belly (2Y at 3.84%, 5Y at 3.99%) and steepening aggressively at the long end.
The 120 basis point spread between 1-month and 30-year yields suggests markets expect rates to remain elevated for an extended period, even as the Fed holds the funds rate at 3.64%.
Context
After two years of inversion, the yield curve's normalization has been driven primarily by rising long-end rates rather than falling short-end rates. This pattern -- often called a "bear steepening" -- typically reflects concerns about fiscal deficits, inflation persistence, or increased Treasury supply.
With the national debt exceeding $39 trillion and the federal deficit continuing to widen, the Treasury's borrowing needs are putting upward pressure on long-dated yields.