Treasury yields rise as investors weigh the potential for higher Fed rates

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., Wednesday, Nov. 9, 2022.

Michael Nagle | Bloomberg | Getty Images

US Treasury yields rose on Wednesday, as traders weighed the likelihood of higher interest rates from the Federal Reserve.

The yield on the benchmark 10-year Treasury note rose nearly 1.3 basis points to 3.349% near 2 a.m. ET, while the yield on the 30-year Treasury note rose half a basis point to 3.599%. The yield moves inversely to the prices.


US1M US 1 month Treasury 4.848% +0.234 0.00%
US3M US three-month Treasury 4.924% +0.039 0.00%
US6M US 6-Month Treasury 4.847% +0.04 0.00%
US1Y US 1 Year Treasury 4.598% +0.108 0.00%
US2Y US 2-year Treasury 3.862% +0.028 0.00%
US10Y US 10-year Treasury 3.348% +0.011 0.00%
US30Y US 30 year treasury 3.596% +0.002 0.00%

On Wednesday, there will also be an auction of $36 billion of 17-week Treasury bills.

Jobs data released on Tuesday showed job vacancies fell below 10 million in February for the first time in nearly two years, pushing up Treasury yields as investors weighed whether the information could deter the Fed from further rate hikes.

Future monetary policy moves remain in focus, with the Federal Reserve continuing to tackle inflation and the aftermath of bank collapses that caused turmoil in bond markets in recent weeks.

The Fed is next scheduled to meet in early May, when the key rate is likely to rise by another 25 basis points, according to CME Group’s FedWatch tool.

Federal Reserve Bank of Cleveland President Loretta Mester said in a speech in New York on Tuesday that the central bank had to raise interest rates to meet inflation. She gave no details.

– Exactly how much higher the federal funds rate has to go from here and how long the policy has to remain restrictive will depend on how much inflation, and inflation expectations move down, Mester said, adding that it will depend on how much demand decreases, supply challenges are resolved , and the price pressure decreases.”

Investors are also looking ahead to the non-farm payrolls data set, due for release on Friday.

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