The returns of the United States Treasury bonds rose slightly on Monday, as investors digested last week’s labor market data and looked ahead to inflation numbers and the U.S. monetary policy announcement. United States Federal Reserve (Fed) this week.
Returns advanced on Friday after a payrolls report from the work Department stronger than expected, reversing declines from earlier in the week after other data indicated the labor market may be cooling.
On Wednesday, investors will analyze key data from the Consumer Price Index (CPI) and signs that inflation may be moderating could alter expectations about the path of inflation. interest rates of the Federal Reserve.
The central bank is scheduled to release its monetary policy statement on Wednesday afternoon, following the CPI report, and will also release its economic projections.
“Within an environment where investors really don’t know where this is going, people are really looking forward to the Fed meeting,” said Jim Barnes, head of fixed income at Bryn Mawr Trust in Berwyn, Pennsylvania.
The profitability of US Treasury bond The 10-year yield rose 3 basis points on Monday, to 4.461%, while the 30-year yield rose 4 basis points, to 4.589%. The two-year yield, which typically moves in step with interest rate expectations, rose to 4.878% from 4.87% on Friday.
A closely watched part of the U.S. Treasury yield curve, which measures the difference between two-year and 10-year rates, considered an indicator of economic expectations, stood at -42.33 basis points.
Depending on the tool FedWatch According to CME, the probability of a cut of at least 25 basis points at the September meeting is around 50%, down from 60% a week ago, as the strong jobs report created some uncertainty about the timing in which the withdrawal would occur.
He United States Department of the Treasury It will also sell $119 billion in coupons this week, including $58 billion in three-year bonds on Monday, $39 billion in 10-year debt on Tuesday and $22 billion in 30-year bonds on Thursday.
Source: Ambito
