U.S. yields have fallen as growth concerns have grown within the Hawkish Fed

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New York – US Treasury yields fall

Wednesday Trading, Loss Tracking on Wall Street,

After poor US housing data added to the growing recession concerns

In the face of aggressive financial austerity measures by the Federal Reserve.

That leaves a steep path for US interest rates

Conventional market consensus.

“We are seeing a slowdown in US growth. The question is how

It will go down a lot and it will actually start

Continually slow, ”said Bill Merz, head of U.S. fixed income

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Bank asset management in Minneapolis.

“If it’s a big one, and right now we’re just seeing signs

Softening the data and tightening the financial situation. “

The Fed is trying to reduce demand to keep inflation low,

And a part of it works instead of expectation

The actual work of the hiking rate, Merz said.

“The expectation is that such an extreme rate of growth is present

The activity begins to slow down. But we don’t really know if we are

That point is still. We have not seen enough evidence of this

Expectations are beginning to affect this rate increase

Points, “he added.

A tough US 20-year bond auction also added to the bids


The US benchmark 10-year yield reached a one-week high of 3.015%

Among the ultra-Hawkis comments from Fed Chair Jerome Powell

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Tuesday. But after a soft U.S. housing, yields have fallen below 3%

Start number.

Powell said Tuesday the Fed would push interest rates

As much as necessary to curb inflation, he said

The foundation of the economy is under threat.

“If the level of understanding involved moving to the past

‘Neutral’ we will not hesitate to do it, ”Powell said in a statement

Street Journal event, which refers to the economic rate

Activity is not stimulated or restricted.

The interest rate is set at the rate of a Fed fund of futures

2.82% at current end of current year

Of 0.83%. The future also has a factor of about 197 basis points

Growing growth in 2022.

The fall in US housing begins and in building permits

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Rising mortgage rates pressurize Treasury yields as stocks fall.

US housing starts at a 0.2% slip annual rate of 1.724

Million units last month, a lower than the March data revised

Rate of 1.728 million units.

April permits for future home construction also fell 3.2%.

In the afternoon trade, the 10-year yield fell 7 basis points

2.896%, while yielding 30-year bonds

8 basis points decreased to 3.08%.

At the front end of the curve, the U.S. yields two years, which

The Fed rate was down 2.6 basis points, sensitive to expectations

Points 2.671%.

The yield curve has become more flat, with expansion

The two- and 10-year yields in the US are shrinking to 22 bps


Wednesday’s U.S. 20-year auction was well-received, stopping

3.290% through higher yield, lower than expected rate

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Auction deadline. Even then it was the highest yield on record

Since maturity was reintroduced in May 2020.

Its bid-to-cover ratio, demand measurement was 2.5

Less, however, than last month’s auction.

Wednesday, May 18 at 3:01 PM New York / 1901 GMT

Price current net

Yield% change


Three month bill 1.0225 1.0394 -0.031

Six month bill 1.5 1.5325 -0.015

Two year note 99-174 / 256 2.6694 -0.029

Three year note 99-190 / 256 2.8405 -0.041

Five year note 99-84 / 256 2.8965 -0.049

Seven year note 99-184 / 256 2.9199 -0.075

10 year note 99-224 / 256 2.8895 -0.081

20 year bond 86-244 / 256 3.2776 -0.093

30 year bond 96-40 / 256 3.0721 -0.092

Dollar exchange spread

Last (bps) net



US 2-Year Dollar Exchange 27.75 0.25


US 3-Year Dollar Exchange 13.50 1.25


US 5-Year Dollar Swap 3.00 0.00


US 10-Year Dollar Exchange 5.75 -0.25


US 30-Year Dollar Exchange -27.00 -1.00


(Reporting by Gertrude Chavez-Dreyfus; Editing by Jonathan




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