LONDON: A selloff in US government bonds resumed on Monday, with short-dated bond yields jumping to their highest since 2019 and the gap between five-and 10-year bond yields moving further into inverted territory.

The two-year Treasury yield rose to as high as 2.41%, its highest since early 2019 and was last up around 7 basis points on the day. Ten-year bond yields pushed decisively above the 2.5%-marker , also hitting their highest level since April 2019.

US Treasury yields jump on tighter Fed policy expectations

The yield curve, as measured by the gap between 5 and 10-year yields, fell to around minus 13 bps – moving further into inverted yield territory in a sign that markets think recession risks are growing.