U.S. Government Debt Price It rose on Monday morning as the Turkish lira’s dramatic recession raised concerns about a new currency crisis.
10-year yield exceeded 1.7% Late last weekAlthough it was a 14-month high, the 30-year yield temporarily exceeded 2.5%. The sharp rise in yields, following comments from the Federal Reserve Board of Governors and its chairman Jerome Powell, indicates that the central bank will tolerate higher inflation.
The 10-year yield started in less than 1%.
The latest move comes shortly after Turkish President Recep Tayyip Erdogan Suddenly replaced The country’s central bank manager sends a shock wave across the financial markets.
The lira fell to the last lows seen in November after Turkey’s central bank governor suddenly resigned from Naci Agbal earlier on Saturday. The US dollar was last seen to rise 10% against the Turkish lira at 7.9317.
The news is expected to have a spillover effect on other emerging markets exposed to Lira.
A host of speakers from the US Central Bank is expected to comment on the US economic outlook on Monday. Chair Powell will speak at a virtual event at the Bank for International Settlements Innovation Summit at 9 am Eastern Standard Time.
Richmond Fed President Thomas Barkin, San Francisco Fed President Mary Daily, Randal Quarles Fed Vice-Chairman, and Fed President Michelle Bowman will also attend separate events throughout the trading session.
On the data side, existing home sales in February will be released around 10am EST.
The US Treasury will auction a $ 57 billion 13-week invoice and a $ 54 billion 26-week invoice on Monday.
— CNBC’s Maggie Fitzgerald and Vicky McKeever contributed to this report.
10-year Treasury yield focused in the turmoil of Turkey
Source link 10-year Treasury yield focused in the turmoil of Turkey