New York — US Treasury Yields
Intermittent transactions on Wednesday, tracking losses on Wall Street,
After a downturn in U.S. housing data joins growing concerns about a slowdown
As a result of aggressive monetary tightening by the federal government
That said, the steep road in US interest rates remains
General market consensus.
US benchmark 10-year yield reached a weekly high of 3.015%
In a super-hawkish comment from Fed Chair Jerome Powell
Tuesday. However, yields fell below 3% due to weak housing in the United States.
Powell said Tuesday that the Fed will push up interest rates.
High as needed to stop the inflation surge he said
Threatened the foundation of the economy.
“If it involves moving beyond a widely understood level
“Neutral” We don’t hesitate to do that, “Powell said on the wall.
See Street Journal Events, Economic Speed
Activities are neither stimulated nor constrained.
In a study note on Wednesday, Jim Vogel wrote:
The Federal Reserve uses interviews to “overcome severe inflation”
Combat profile. “
Powell’s reminder about inflation said, “2022 hasn’t changed.
Expectations for yesterday’s policy. Instead, they “accelerated”
Showed an implicit increase in 2023 and expanded them in the next period
Interest rate futures are priced at the federal funds rate
At the end of this year it was 2.82%
U.S. housing collapse begins, building permit
Rising mortgage rates weighed on Treasury yields as stocks fell.
Housing starts fell 0.2% in a seasonally adjusted year
Last month’s rate was 1,724 million units, but March data is
Revised low to a percentage of 1,728 million units
Previously reported 17.93 million units.
At the same time, permission to build future homes was withdrawn
Percentage of 3.2% to 1,819 million units.
“There is an even bigger downside to housing demand.
For single-family buildings, confirmed by Sharp last week
Decrease in mortgage purchase applications, “said Jeffreys.
Research notes that include Chief Economist Aneta as a contributor
“It is doubtful that the housing sector will be able to do so.
It completely offsets these expected reductions.Net, it’s still likely
Its overall housing start drifts low in three:
Up to 6 months. “
In the morning trading, 10-year yields fell by less than 2.
The basis point is 2.497 and the 30-year bond yield is
It was down 2.6 basis points to 3.138%.
At the forefront of the curve, the US two-year yield is
Sensitive to Federal Reserve interest rate expectations,
2.696% basis points.
The yield curve is even flatter and the spread is
US 2- to 10-year yields reduced to 25.4 base
Wednesday, May 18th 10:12 AM New York / 1412GMT
Price current net
3 month invoice 1.0351.0521-0.018
6 month invoice 1.51251.5453-0.003
2-Year Bond 99-161 / 256 2.6964 -0.002
3-Year Bond 99-164 / 256 2.8763 -0.006
5-Year Bond 99-36 / 256 2.9377 -0.008
7-year bond 99-96 / 256 2.9751 -0.020
10-Year Bond 99-92 / 256 2.9495 -0.020
20-year bond 86-8 / 256 3.3474 -0.024
30-Year Bond 94-228 / 256 3.1392 -0.025
Dollar swap spread
Last (bps) net
US two-year dollar swap 27.25-0.25
US dollar swap for 3 years 12.750.50
US $ 5 Swap 3.000.00
US 10 Year Swap 5.75-0.25
US $ 30 Swap-26.75-0.75
(Report by Gertrude Chavez-Dreyfuss; edited by Jonathan
US yields have eased after the rise in Powell fuel on Tuesday.Soft housing data is important
Source link US yields have eased after the rise in Powell fuel on Tuesday.Soft housing data is important