US Treasury bonds hit their highest levels in 5 months

US Treasury bonds hit their highest levels in 5 months

Stock performance improved following the jobless claims report, as investors weigh the Fed’s next moves.

Photo: Freepik

The performance of the United States Treasury bonds continued to rise this Thursday and reached its highest levels since November, in turn driving the advance of the global dollar.

Meanwhile, investors evaluate economic data and warnings from regulators. Federal Reserve (Fed), about the slowdown inflation it could have stalled.

The performance of the reference bonuses 10-year notes rose 5.2 basis points, to 4.637%, and 30-year notes gained 3.6 basis points, to 4.736%. At the same time, the return of two-year papers, which usually moves at the pace of rate expectations, It advanced 5.6 basis points, to 4.988%.

In parallel, the results of the auction of $23 billion of five-year US Treasury inflation-protected securities were better than expected in almost all parameters.

He high performance of the note stopped at 2.242%, below the expected rate at the offering deadline, suggesting that investors were willing to settle for a lower yield to get hold of the security.

Data on the United States economy

Depending on the tool FedWatch According to CME, markets now expect a total cut of 42 basis points by the end of the year, compared to the more than 160 that were expected in January, and believe that the first reduction will occur in September.

The number of Americans who filed new applications for unemployment benefit did not change last week, according to the Work Department, which points to continued strength in the labor market.

Additionally, initial claims for state unemployment benefits remained at a seasonally adjusted 212,000 in the week ended April 13, compared to the 215,000 claims Reuters anticipated in the latest week.

Fed policymakers pointed to the continued strength of the U.S. labor market as a reason to delay cutting interest rates. interest rates in order to avoid a reacceleration of inflation.

Source: Ambito

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