30-year yields also hit a milestone on Tuesday, rising to 3.81%, the highest since January 2014. The yield then gained 10.5 basis points to 3.799%. “It seems that we are in the midst of a profitability thaw. Valuations are getting to the point of looking relatively attractive.”said Joseph Kalish, chief global macroeconomics strategist at Ned Davis Research.
“As we have noted before, yields tend to peak before the end of the tightening cycle. We are not at the end of the cycle, but we could get to it early next year,” he added.
Chicago Fed President Charles Evans and St. Louis Fed President James Bullard discussed the need to continue raising rates on Tuesday. A closely watched part of the US Treasury yield curve, which measures the difference between yields on 2-year and 10-year Treasury bonds, remained inverted at -36.2 basis points.
An inversion of the yield curve is widely considered a harbinger of recession. The two-year US Treasury return, which typically moves in step with interest rate expectations, fell 2.7 basis points to 4.283%, tafter reaching a 15-year high of 4.312% on Monday.
Source: Ambito
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