Bond yields paused Monday after the benchmark 10-year backed up final week.
What’s occurring
-
The yield on the 2-year Treasury
BX:TMUBMUSD02Y
was 4.47%, down 1.7 foundation factors. Yields transfer in the other way to costs. -
The yield on the 10-year Treasury
BX:TMUBMUSD10Y
was 4.16%, down 1 foundation factors. -
The yield on the 30-year Treasury
BX:TMUBMUSD30Y
was 4.36%, down 1.2 foundation factors.
What’s driving markets
Last week, the yield on the 10-year Treasury rose by practically 16 foundation factors.
Rate strategists at Bank of America mentioned there are dangers the 10-year vary is shifting increased resulting from sturdy U.S. financial knowledge. They additionally famous that when the 10-year yield rises in January — it rose 3.3 foundation factors in the course of the first month of 2024 — it has gained the remainder of the primary quarter 70% of the time since 1963. And when January was increased, February by way of the remainder of the 12 months rose 61% of the time.
Monday will see the discharge of the New York Fed’s measure of client inflation expectations, in addition to speeches from Fed Gov. Michelle Bowman and Minneapolis Fed President Neel Kashkari, however the focus can be Tuesday’s launch of the patron value index.
Economists at Daiwa say providers costs will assist to offset the easing in gasoline costs and downtrend in meals inflation.
Source web site: www.marketwatch.com
