However, the Fed appeared to pour cold water on that idea on Monday, with four different officials speaking cautiously about the path the central bank will take after a widely-anticipated hike in March.
“We continue to believe that the hawks’ estimates will turn out to be overdone,” said Arthur Hogan, chief market strategist at National Securities Corp.
“The current Federal Reserve has been both hyper-transparent and firmly deliberate in its actions. The chance of them doing anything that will surprise the markets seems unlikely,” he added.
The 10-year Treasury bond yield was up 1.1 basis points at 1.793%, while the 30-year Treasury bond yield was up 2.2 basis points at 2.120%.
The portion of the US Treasury yield curve that measures the difference between 2-year and 10-year Treasury yields, seen as an indicator of economic expectations, stood at 61.4 basis points, up slightly from pending after the lowest spread since October 2020 reached on Monday.
The yield on the two-year US Treasury note, which typically moves in step with interest rate expectations, was up 1.2 basis points at 1.177%.
By David Randall of Reuters news agency
Source: Ambito
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