Yields fall below one month due to concerns over poor housing growth

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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.”

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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

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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

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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

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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

Yield% change


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)



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