“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%, after reaching a 15-year high of 4.312% on Monday.
Source: Ambito
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