Long-term yields hold near three-week highs ahead of another wave of economic data

by user

Long-term yields held near three-week highs ahead of another wave of economic data.

What’s happening
  • The yield on the 2-year Treasury

    fell 3 basis points to 4.20%. Yields move in the opposite direction to prices.

  • The yield on the 10-year Treasury

    eased 3 basis points to 3.65%.

  • The yield on the 30-year Treasury

    fell 1 basis point to 3.71%.

What’s driving markets

Thursday’s economic data is set to include a revision to third-quarter GDP, weekly jobless claims, and the Conference Board’s index of leading economic indicators. Friday will see the release of the PCE price index, the Federal Reserve’s preferred measure of inflation.

“We expect bond yields to head higher in the near term as the Federal Reserve hikes policy rates to 4.75%–5.00% in Q1 2023,” said analysts at Credit Suisse.

Economists at Mizuho say the core PCE data may come in above expectations, which will “drive a wedge between the market’s more benign view on inflation versus the Fed’s view.”

Source link

Related Posts

Leave a Review

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy