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