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NEW YORK — The benchmark for U.S. Treasury yields
rose on Tuesday to its highest level since June
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The Federal Reserve is expected to continue raising interest rates
rates as it struggles with soaring prices, while a planned reduction
from the balance sheet of the US central bank will add a tighter
financial conditions.
The Fed is expected to raise rates by another 75 basis points
at the September 20-21 meeting that will raise the federal funds rate
to 3.0% to 3.25%. That is, from the range from zero to 0.25%.
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march
Concerns that inflation will remain consistently high if
the rise in energy prices as winter approaches increases the pressure
yield on government bonds. Russia has preserved one of its main gases
supply routes to Europe are closed, fueling fears of winter fuel
lack of
Meanwhile, the Fed is increasing the amount this month
bond he will allow the roll of his balance as part of it
efforts to normalize monetary policy.
“You have all this fear that rates are going to go up
Inflation is not going to happen at the level of the central bank
dissipate and then you get quantitative hardening
is going pretty fast – said Tom di Galloma, managing director
Seaport Global Holdings in New York.
The Fed will now allow $95 billion in bond repayments
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balance every month, including $60 billion in Treasuries
and $35 billion in mortgage-backed debt.
The yield on 10-year notes last year was 3.313%,
highest sine on June 21st. They rose from a four-month low
2.516% as of August 2, but held below an 11-year high
3.498% reached on June 14.
The yield on the two-year interest rate-sensitive bond was last
3.486%, after reaching 3.551% on Thursday, the highest since then
November 2007.
The yield curve between two-year and 10-year notes
remained inverted at the level of minus 18 basis points,
an indicator that a recession is likely in the next one or two
years. However, the inversion is less severe than minus 56
the level of basis points reached on August 10.
A large amount of expected investment-grade corporate debt
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on Tuesday, the market also saw a weighing of supply.
Tuesday, September 6, 9:41 AM New York / 1:41 PM GMT
Price Current Net
Profitability % change
(bps)
Quarterly bills 2.88 2.94 0.031
Six Month Bills 3.295 3.3955 0.044
Two-year banknote 99-141/256 3.4864 0.088
Three-year banknote 98-212/256 3.5481 0.117
Five-year note 98-164/256 3.4241 0.130
Seven-year note 98-72/256 3.4036 0.127
10-year note 95-68/256 3.3129 0.122
20-year bond 95-40/256 3.7211 0.107
30-year bond 91-156/256 3.4517 0.108
DOLLAR SPREADS SWOP
Latest network (bps).
A change
(bps)
2-year dollar swap 35.50 -0.50
distribution
3-year dollar swap 12.50 -1.50
distribution
5-year dollar swap 6.75 -0.50
distribution
10-year dollar swap 8.50 -0.75
distribution
30-year dollar swap -31.50 -2.00
distribution
(Reporting by Karen Brettel; Editing by Jonathan Oatis)
