New York – US Treasury yields fall
Tuesday’s one-month low after pointing to housing data
Cold Economy as the Federal Reserve Press
Aggressively raising interest rates to cope with rising inflation.
Sales of new U.S. single-family homes have fallen in two years
Low in April, probably due to high mortgage rates and record prices
Immersed in first-time buyers and those looking for entry-level
Property outside the housing market.
“This is bad news for house prices and economic activity.”
James Knightley, chief international economist at INN, a
“It refers to weak demand and increasing supply potential
That home price will soon top out and start falling. Emerging
Home prices are falling in an environment where interest rates are falling
It is never a good combination for consumer sentiment and will add
Below the probability of a pruning and potential recession
Line, “he said.
Long-term yields have fallen from 3-1 / 2-year highs
The sharp fall in stocks increased demand for the US government
Debt, and investors are concerned that the Fed’s continued rate hikes
It will plunge the economy into recession.
“There is some internal interest in increasing this rate,
Where the account concludes that a recession
Probably much closer than the market, ”said Tom D.
Galloma, managing director of Seaport Global Holdings in New
Other data show that US business activity has moderately slowed
As demand for high-value services declined in May.
The yield on the two-year note fell to 2.464%, the lowest
From April 19, before returning to 2.483%. Benchmark 10-year
The yield on the note fell to 2.718%, the lowest since then
April 27, before rebounding 2.760%.
Minutes from the Fed’s May meeting published Wednesday
The US Federal Reserve is likely to show commitment
Strictly tighten policy.
Fed Funds Futures Traders are setting prices at 50 basis points
Increases for each of the Fed’s June and July meetings and a
Strong chances of the same happening in September. Fed’s benchmark
The rate is expected to increase from 0.83% to 2.90% by March.
However, some investors also feel that the Fed could pivot at a
Less aggressive position when the economy is significantly weaker.
Atlanta Fed President Rafael Bostick said Monday
It may be “understandable” to stop further hiking after June
July meeting impact assessment for the US Federal Reserve
Inflation and the economy.
Expectations of inflation have also come down as the breakaway rate continues
Five-year Treasury Inflation-Protected Securities (TIPS)
A measure of the expected average annual inflation
The next five years, at 2.90% on Tuesday. They have fallen since
3.62% last month.
The Treasury Department has seen strong demand for 47 47 billion
Two-year note sale on Tuesday, first sale $ 137
Billions of loans carrying new coupons this week.
The notes were sold at a high yield of 2.519%, on an almost official basis
The bottom point is where they were in business before the sale. The
The bid-to-cover ratio was 2.61 times stronger.
The US government will sell $ 48 billion in five years
Wednesday notes and $ 42 billion seven-year notes
Tuesday, May 24 at 3:00 PM New York / 1900 GMT
Price current net
Three month bill 1.0475 1.0649 -0.013
Six-month bill 1.47 1.5016 -0.064
Two year note 100-8 / 256 2.4828 -0.142
Three year note 100-64 / 256 2.6618 -0.129
Five year note 99-248 / 256 2.7566 -0.119
Seven year note 100-138 / 256 2.7887 -0.108
10 year note 101 2.7596 -0.099
20 year bond 101-84 / 256 3.1597 -0.099
30 year bond 98-24 / 256 2.9715 -0.095
Dollar exchange spread
Last (bps) net
US 2-Year Dollar Exchange 30.75 2.25
US 3-Year Dollar Exchange 13.50 0.50
US 5-year dollar swap 2.25 0.50
US 10-Year Dollar Exchange 5.25 0.25
US 30-Year Dollar Exchange -26.00 1.50
(Reporting by Karen Bretel; Editing by Amelia
Sithol-Mataris, Nick Jiminski and Richard Chang)