And traders viewed the data as an influential factor in the Fed’s monetary policy, as it indicates economic strength.
The US Department of Commerce reported that the retail sales increased 3% the month of January. This represents a rebound after two consecutive monthly dropsdriven by the vehicle purchases motor and other goods, pointing to the continued resilience of the economy despite higher borrowing costs.
The operators considered the data as a influential factor in Fed monetary policysince they indicate the economic strength despite higher borrowing costs. “The Federal Reserve has been very clear in stating that she believes that you have a ways to go with the ratesand that will depend on the data,” said michael lorizio, senior operator fixed income Manulife Investment Management.
The increase in bonuses
Thus, the 10-year note yield they rose 4.6 basis points to 3.8068%, their highest level since January 3, reflecting market expectations that the Fed will keep interest rates high for longer. He return of papers to 30 years it rose 4.4 basis points to 3.846%.
And the performance of the roles at two years it rose 0.2 basis points to 4.624%, after touching earlier in the session its highest level since the beginning of November. Two-year notes are especially sensitive to movements in rate expectations.
The yield curve between the two-year and 10-year notes was trading at -82 basis points, after steepening to -91.3 basis points on Tuesday.
The Treasury Department sold US$15,000 million in 20-year bonds on Wednesday with a yield of 3.977%. and on thursday will auction US$9,000 million to 30 years protected against inflation.
Source: Ambito
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