The return on 30-year bonds reached its highest point in 12 years, while the 10-year bond reached 4.354%, marking its highest level since November 2007.
This Monday, August 21, the yields of the Treasury bond 10-year US bonds reached levels not seen since the financial crisis of 2007driven by restlessness about a possible extension of the interest rates higher by the Federal Reserve.
The massive sale of Treasury bond caused the profitability of the t30 year securities reached its highest point in 12 years, while the 10-year bond reached 4.354%, marking its highest level since November 2007almost a year before the bankruptcy of Lehman Brothers that triggered the Great Financial Crisis.
Although a slowdown of inflation In the next six to twelve months, there are persistent pressures as the rate of unemployment, at 54-year lows, drives wage growth and reduction in oil production from the OPEC it drives up fuel costs, according to Troy Ludtka, chief US economist at SMBC Nikko Securities Americas.
Ludtka added that although the rate of inflation does not reflect it, an increase in these economic pressures is perceived. Debt yields at 10 years rose 9.3 basis points to 4.338%, while those aged 30 increased 7.3 basis points to 4.474%.
In anticipation of the Fed’s annual symposium in jackson holeWyoming, due to start on Thursday, several investors are concerned that the monetary authorities pose upside risks to rates.
On Friday, Fed Chairman Jerome Powellwill deliver a speech and the speakers are expected to address structural elements of inflation, or suggest how the neutral rate might be higher in a post-COVID world, according to Vishnu Varathan of Mizuho Bank in Singapore.
On the other hand, the two-year bond yield, which usually reflects rate expectations, rose 5.6 basis points to 4.992%. The yield curve, which measures the difference between the returns of two-year and 10-year bonds and which is considered an indicator of recession, it stood at -65.6 basis points.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
