World

Treasury yields flat as Fed rate hikes fear easing

Yields on the US Treasury remained largely unchanged on Friday morning as concerns about plans to aggressively raise interest rates by the Federal Reserve Board seemed to have eased.

Benchmark yield 10-year government bond At 4:25 am ET, it dropped to 2.75% below the basis point.Yield 30-year government bond It also dropped to 2.983% below the basis point. Yields are inversely proportional to price, and one basis point corresponds to 0.01%.

Treasury yields have fallen almost this week as investors sought shelter from mass sales on the stock market. Disappointing earnings from many tech stocks have fueled concerns that slowing economic growth may be beginning to appear in corporate data.

The Fed’s plans to aggressively raise interest rates to combat inflation have raised concerns among investors that this will contribute to the recession.

A few minutes from Central Bank May MeetingAnnounced Wednesday, the Fed has indicated that interest rates need to be raised quickly and that the market may go further than expected. However, the rise in stock prices on Wednesday afternoon shows that investors were hardly surprised by the minutes.

On Friday, investors will focus on reading the April Consumer Expenditure Price Index. This is the Fed’s recommended inflation index and will be released at 8:30 EST.

Stock Selection and Investment Trends from CNBC Pro:

Bhanu Baweja, chief strategist at UBS Investment Bank, told CNBC’s “Squawk Box Europe” on Friday that inflation could peak and price increases could begin to fall.

“In the meantime, I think the US economy is in a decent state. There is no doubt that it’s a slow cycle, but the recession isn’t imminent. By the way, the market doesn’t think it’s imminent.” Said Baweja.

Data on personal income and expenses for April will be released at 8:30 am EST.

The final May consumer sentiment reading at the University of Michigan will be published at 10 am.

There are no auctions scheduled for Friday.

Treasury yields flat as Fed rate hikes fear easing

Source link Treasury yields flat as Fed rate hikes fear easing

Back to top button