Home Business annual yields are the highest since June as Fed tightening continues

annual yields are the highest since June as Fed tightening continues


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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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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


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


Latest network (bps).

A change


2-year dollar swap 35.50 -0.50


3-year dollar swap 12.50 -1.50


5-year dollar swap 6.75 -0.50


10-year dollar swap 8.50 -0.75


30-year dollar swap -31.50 -2.00


(Reporting by Karen Brettel; Editing by Jonathan Oatis)



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