Treasury yields shrug hotter inflation reports

Treasury on Friday morning as investors shrugged the 5% annual rise in inflation reported in a previous session, suggesting that rising price pressures could be temporary. Yields have fallen.

Benchmark yield 10-year government bond It dropped to 1.443% at 4:15 EST.Yield 30-year government bond It dropped to 2.14%. Yield is inversely proportional to price.

Core consumer price index May increased by 5% year-on-year, The highest since the summer of 2008, surpassing the 4.7% increase expected by economists polled by Dow Jones.

Except for food and energy Core CPI up 3.8% year-on-year, The highest pace since 1992. One-third of the increase was due to a sharp rise in used car and truck prices of 7.3%.

Nanette Heckler Fade Helve, Chief Investment Officer of Credit Suisse International Wealth Management, said the recent decline in long-term government bond yields has given the economy “growth momentum” despite high inflation. Is slowing down, “he said.

She said the market would soon enter another stage, driven by the guidance the central bank gives on monetary policy. The next Federal Reserve Board of Governance policy meeting on June 15 and 16 said, “It could launch a market … expectations for future monetary policy will also be adjusted, so a second rise in interest rates. “Waves,” she said. Hechler Fayd’Herbe expects longer-term government bond yields to rise again in the second half of this year.

The University of Michigan will release June national data on economic indicators such as consumer sentiment and inflation expectations at 10 am on Friday.

There are no auctions scheduled for Friday.

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

Treasury yields shrug hotter inflation reports

Source link Treasury yields shrug hotter inflation reports

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