US Treasury yields rose Monday morning and continued to rise from last week as the Federal Reserve board approached policy easing during the pandemic era.
Benchmark yield 10-year government bond Early trading was above the major 1.5% level and at some point above 1.51%. Yield increased 1.7 basis points to 1.478% at 10 am EST.Yield 30-year government bond It increased by about 1.4 basis points to 2%. Both indicators have been trading near their highest levels in about three months. Yield is inversely proportional to price, and one basis point is equivalent to 0.01%.
Treasury yields rose last week after the Federal Reserve Board suggested that the asset purchase program could soon be curtailed. Moreover, More and more Fed officials are seeing rate hikes in 2022According to a forecast released by the central bank last week.
“Last week’s big secret was the yield movement, which I think was fairly consistent across the board. The bond market is beginning to smell something that the stock market hasn’t fully realized yet. Allianz Mohammed Elarian, Chief Economic Advisor of the market, said it was “differentiating.”Squawk Box.“”
New York Fed President John Williams said Monday that the US economy “almost meets the” substantial further progress “standard set in December last year as a criterion for initiating a reduction in asset purchases.”
Yields are also rising as rising wages and supply chain problems fuel fears of inflation.
“Let’s face it. The 10-year nominal financial interest rate in the range we’ve seen recently simply can’t have many expectations of long-term inflation built into it,” Williams said.
Federal Reserve Board Chair Jerome Powell will speak at the US Senate on Tuesday and at the European Central Bank Forum on Wednesday. Investors may hear more clues as to when the Fed plans to cut back on its bond-buying programs.
On Monday, Federal Reserve Board of Governors Rael Brainard will talk about the economic outlook at 12:50 pm EST at the 63rd Annual Meeting of the National Association for Business Economics.
August measurements on consumer durables orders on Monday rose 1.8%, well above expectations thanks to the significant surge in the transport sector. Last month’s readings were also revised higher.
Meanwhile, investors are also watching the progress of the $ 1 trillion infrastructure bill in Washington.
Speaker of the House Nancy Pelosi said on Sunday She hopes the bill will pass this week, but voting on the bill could be postponed from the original Monday timeline.
Congress must pass a new budget by the end of September to avoid closures, and lawmakers have also figured out ways to raise or suspend debt caps in October before the United States defaults for the first time. Must be.
The auction is scheduled to take place on Monday, with 13-week invoices of $ 42 billion, 26-week invoices of $ 42 billion, 2-year bonds of $ 60 billion, and 5-year bonds of $ 61 billion.
— — CNBC’s Yun Li and Jeff Cox contributed to this market report.
Treasury yields rise at the beginning of the week, 10-year yields exceed 1.5%
Source link Treasury yields rise at the beginning of the week, 10-year yields exceed 1.5%