US Treasury Bonds improve their yield due to data that reflects economic growth

US Treasury Bonds improve their yield due to data that reflects economic growth

The fixed income market in the US is attentive to the Federal Reserve’s report on the personal consumption expenditure inflation index, which will be published this Friday.

The US Treasury bond yields They rose this Thursday, March 28, in a shortened day, after the publication of data that showed economic growth in the United States faster than previously reported in the fourth quarter.

He 10-year Treasury bond yield rises 0.6 basis points to 4.2%. It rose about 35 basis points in the first three months of the year. The two-year yield, which typically moves in step with interest rate expectations, rose 5.2 basis points to 4.6221%, gaining 38 bps in the quarter. And the yield on the 30-year bond falls 1.2 basis points to 4.3474% to add 33 bps in the quarter.

Meanwhile, a closely watched part of the US Treasury yield curve, which measures the difference between two and ten year bondsconsidered an indicator of economic expectations, stood at -42.4 basis pointsslightly more inverted than Wednesday’s level of -38.4 basis points.

The scenario in which US bond yields rise

Thanks to strong consumer spending and business investment in non-residential structureslike factories, the Gross Domestic Product (GDP) increased at an annualized rate of 3.4% last quarter, revised upward from the previously reported 3.2% pace, the Commerce Department said in its third GDP estimate of the fourth quarter.

A separate report from the Department of Labor showed that initial claims for state unemployment benefits fell by 2,000to a seasonally adjusted figure of 210,000, in the week ending March 23.

The figures did not influence the fixed income market, which is more attentive to the Federal Reserve report on the inflation index of personal consumption expenses, which will be published this Friday.

He Chairman of the Federal Reserve (Fed), Jerome Powell, He will also take part in a moderate monetary policy debate on Friday, which means the market will not be able to react to this week’s two biggest news stories until Monday, due to the Easter holidays.

Source: Ambito

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