Fischer Flagging Gradual Fed Increases Flattens Treasuries Curve

The Treasury yield curve flattened for a fourth day as investors awaited data this week that may signal if the U.S. economy is strong enough to handle higher interest rates.

The difference in yield between two- and 10-year notes was set for its smallest closing level in more than two weeks after Federal Reserve Vice Chairman Stanley Fischer said central bankers are weighing the risk of raising rates prematurely. The Treasury market was closed on Monday in New York for the Memorial Day holiday.