Long-term yields neared their lowest for the year on Thursday as investors wagered that early rate hikes would curb future inflation, leading to a sharp flattening of the entire curve. Thirty-year Treasury yields hit 1.74% in late New York trade, their lowest since January. Assuming that higher rates next year will ultimately translate to lower inflation and a lower peak in interest rates later on, traders have squeezed the gap between two-year and 10-year yields to the narrowest in eleven months.