Dollar today and blue dollar today: the minute by minute price of Monday, September 19
It also made it more likely that the Fed will raise rates by another 75 basis points when it concludes its two-day meeting on Wednesday. Traders are now projecting a 77% chance of a 75 basis point increase and a 23% chance of a 100 basis point increase.
Investors are grappling with how long the Fed will raise rates, at a time when monetary tightening by central banks globally also raises growth concerns.
“They’ve been signaling a number of rate hikes and this is one of them, but we won’t hear anything this week about when the rate hikes might end,” said Jim Vogel, interest rate strategist at FHN Financial in Memphis, Tennessee.
Benchmark 10-year returns peaked at 3.518%, the highest level since April 2011, before falling to 3.479%. Two-year yields hit 3.961%, the highest since November 2007, before trading at 3.942%.
The yield curve between 1-year and 10-year notes inverted to -48 basis points. An inversion in this part of the curve is considered a reliable indicator that a recession is coming in a year or two.
The Treasury will sell $12 billion of 20-year debt on Tuesday and $15 billion of 10-year inflation-protected securities (TIPS) on Thursday.
Source: Ambito
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