10-year note 3.276%, 2-year note 3.236%
Ahead of the FOMC meeting on the 15th, the previous day’s rise slightly reversed.
photo = REUTERS
U.S. Treasury yields, which had surged the day before, due to concerns over the possibility of a big step by the Fed, began to take a breather as yields on U.S. Treasuries fell slightly.
According to CNBC on the 14th (local time), the benchmark 10-year U.S. Treasury yield fell regarding 9 basis points to 3.276% earlier this morning. The day before, it was the biggest move since 2020, rising to 3.39%.
The yield on the 30-year Treasury bond fell by regarding 7bp to 3.298%, and the yield on the 2-year Treasury fell by 5bp to 3.236%. Bond yields are inversely proportional to price, with a basis point of 0.01%.
The two-year bond yield and the 10-year bond yield on the previous day briefly recorded short-term yield inversions for the first time since early April. A reversal of short-term interest rates is often interpreted as an indicator of a short-term recession. That’s because bond market participants went on a massive sell-off on concerns regarding a rate hike to be announced at the Fed’s Federal Open Market Committee (FOMC) meeting, which ends on Wednesday.
“There is less room for the Fed to ease rate hikes,” said Mark Hefele, chief investment officer for UBS Global Wealth Management.
Some in the market are preparing for a 75bp hike, exceeding the 50bp hike that many had expected. That’s because last week’s inflation report showed that prices were worse than expected.
Meanwhile, the National Federation of Self-Employed (NFIB) survey for May is released at around 6 am EST, and the Producer Price Index (PPI) for May is released at 8:30 am EST.
By Kim Jung-ah, staff reporter [email protected]
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