Treasury yield curve is flattest in a week

The Treasury yields fell to more than one-week lows and the yield curve between five-year notes and 30-year bonds flattened to 101 basis points, the lowest since July 25 after the Bank of England [BoE] pushed out the odds of the first rate hike to 2018 and the US data disappointed expectations. 

The yield on the 10-year Treasury note fell to 2.225%, down from 2.262% on Wednesday. The Institute for Supply Management (ISM) said its non-manufacturing index fell to a reading of 53.9 last month from 57.4 in June. The details revealed a slowdown in the job growth. 

The yield curve between 10-yr note and two-year note and five-year notes and 30-year bonds could flatten further if the US wage growth numbers scheduled for release today at 18:00 GMT disappoint expectations.