{"id":630215,"date":"2023-04-17T05:25:00","date_gmt":"2023-04-17T10:25:00","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/04\/17\/bond-report-treasury-yields-higher-as-market-cements-25-basis-point-hike-by-fed-in-may\/"},"modified":"2023-04-17T05:25:00","modified_gmt":"2023-04-17T10:25:00","slug":"bond-report-treasury-yields-higher-as-market-cements-25-basis-point-hike-by-fed-in-may","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/04\/17\/bond-report-treasury-yields-higher-as-market-cements-25-basis-point-hike-by-fed-in-may\/","title":{"rendered":"Bond Report: Treasury yields higher as market cements 25 basis point hike by Fed in May"},"content":{"rendered":"<div id=\"js-article__body\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0001927691\" role=\"document\">\n<p>Bond yields nudged higher on Monday as calmer conditions across markets softened demand for the perceived safety of government bonds.<\/p>\n<h6>What\u2019s happening<\/h6>\n<ul>\n<li>\n      The yield on the 2-year Treasury<br \/>\n        <a data-track-hover=\"QuotePeek\" data-charting-symbol=\"BOND\/BX\/XTUP\/TMUBMUSD02Y\" href=\"http:\/\/www.marketwatch.com\/investing\/bond\/TMUBMUSD02Y?countryCode=BX&#038;mod=MW_story_quote\" target=\"_blank\" rel=\"noopener\">TMUBMUSD02Y,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.000%\" channel class>4.156%<\/bg-quote><\/a><br \/>\n       climbed 5.5 basis points to 4.165%. Yields move in the opposite direction to prices.<\/p>\n<\/li>\n<li>\n      The yield on the 10-year Treasury<br \/>\n        <a data-track-hover=\"QuotePeek\" data-charting-symbol=\"BOND\/BX\/XTUP\/TMUBMUSD10Y\" href=\"http:\/\/www.marketwatch.com\/investing\/bond\/TMUBMUSD10Y?countryCode=BX&#038;mod=MW_story_quote\" target=\"_blank\" rel=\"noopener\">TMUBMUSD10Y,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.000%\" channel class>3.560%<\/bg-quote><\/a><br \/>\n       rose 2.5 basis points to 3.554%.<\/p>\n<\/li>\n<li>\n      The yield on the 30-year Treasury<br \/>\n        <a data-track-hover=\"QuotePeek\" data-charting-symbol=\"BOND\/BX\/XTUP\/TMUBMUSD30Y\" href=\"http:\/\/www.marketwatch.com\/investing\/bond\/TMUBMUSD30Y?countryCode=BX&#038;mod=MW_story_quote\" target=\"_blank\" rel=\"noopener\">TMUBMUSD30Y,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.000%\" channel class>3.776%<\/bg-quote><\/a><br \/>\n       added 1.2 basis points to 3.752%.<\/p>\n<\/li>\n<\/ul>\n<h6>What\u2019s driving markets<\/h6>\n<p>Expectations that the Federal Reserve will raise interest rates in a few weeks time have hardened after a report on Friday showed consumers see inflation over the coming year at a higher level than previously thought. <\/p>\n<div>\n<p>Markets are pricing in an 88.2% probability that the Fed will raise interest rates by another 25 basis points to a range of 5.0% to 5.25% after its meeting on May 3rd, according to the CME FedWatch tool. <\/p>\n<p>The central bank is expected to take its Fed funds rate target back down to 4.6% by December, according to 30-day Fed Funds futures.<\/p>\n<p>As investors have become less uncertain about the trajectory of Fed tightening, so traders have become less concerned about the chances of sharp vacillations in bonds. <\/p>\n<p>The BoAML MOVE index, which measures expected volatility in Treasuries, is trading around 120, having plunged from near 200 in mid March.<\/p>\n<p>U.S. economic updates set for release on Monday include the Empire State manufacturing index for April, due at 8:30 a.m. Eastern, and the April homebuilder confidence index at 10 a.m. Richmond Fed President Tom Barkin is due to make comments at 12:45 p.m.<\/p>\n<h6>What are analysts saying<\/h6>\n<p>\u201cDespite the softer-than-expected inflation data released earlier last week, U.S. inflation expectations shocked investors at last Friday\u2019s release; the 1-year expectation jumped from 3.6% to 4.6% due to the surprise surge in energy prices. The expectation was a further easing to 3.5%,\u201d said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.<\/p>\n<p>\u201cCombined to waning bank stress, the U.S. 2-year yield \u2013 which is a good proxy of what investors think the Fed will do \u2013 rose last week, although we are still far below the 5% level before the Silicon Valley Bank collapsed,\u201d she added.<\/p>\n<\/p><\/div>\n<\/div>\n<p><a href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C06575-04D4-B545-71D6-A0BAD3D3CA99%7D&#038;siteid=rss&#038;rss=1\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Elida Fetzer<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bond yields nudged higher on Monday as calmer conditions across markets softened demand for the perceived safety of government bonds. What\u2019s happening The yield on the 2-year Treasury TMUBMUSD02Y, 4.156% climbed 5.5 basis points to 4.165%. Yields move in the opposite direction to prices. The yield on the 10-year Treasury TMUBMUSD10Y, 3.560% rose 2.5 basis [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":630216,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[534,193,22197],"tags":[],"class_list":["post-630215","post","type-post","status-publish","format-standard","has-post-thumbnail","category-financial","category-report","category-treasury"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/630215","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=630215"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/630215\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/630216"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=630215"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=630215"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=630215"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}