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Treasury yields rise ahead of Fed policy decisions

US Treasury yields rose Wednesday morning ahead of the Federal Reserve Board’s latest monetary policy decision.

Benchmark yield 10-year government bond It rose 2 basis points to 1.254% at 4:20 EST.Yield 30-year government bond Added 2 basis points and advanced to 1.911%. Yields are inversely proportional to price, and one basis point is equivalent to 0.01 percentage points.

The Federal Reserve Board will issue a statement Wednesday at 2:00 pm EST, following a two-day meeting of the Federal Open Market Committee. The Federal Reserve Board of Governors Jerome Powell then speaks to the media at 2:30 EST.

Many investors have been paying attention to the time when the Fed begins to talk about tightening ultra-simple monetary policy amid concerns about rising inflation.However, Fed officials are also likely to raise concerns. Rapid spread of delta variants..

Insight Investment portfolio manager Scott Rusterholtz said on Wednesday that he hopes the Fed will not announce policy changes and will not provide formal guidance on tapering asset purchases.

“Chairman Jay Powell will use the press conference to emphasize the Fed’s data dependencies and patience, reiterating the view that rising inflation is temporary.” ..

Ruesterholz said the delta variant is unlikely to implement a new blockade in the United States given the level of vaccination, but could slow economic growth.

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“This development is likely to strengthen the FOMC’s pigeon’s hand, which does not want to remove policy adjustments prematurely,” he explained.

Ruesterholz said he continues to expect the Fed’s Jackson Hole Summit to be a more “natural point” for a formal discussion of tapering.

The auction is scheduled to take place on Wednesday, with $ 30 billion of 119-day bills and $ 28 billion of two-year floating rate notes auctioned.

— — CNBC’s Patti Domm contributed to this market report.

Treasury yields rise ahead of Fed policy decisions

Source link Treasury yields rise ahead of Fed policy decisions

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