- Advertisement -spot_img
Wednesday, September 28, 2022

Benchmark yield rises to highest since 2011 and curve inverts further

Pour Karen Brettell

nuevaNew YorkSeptember 22 – US Treasury yields hit an 11-year high on Thursday and a key yield spread was the widest in at least two decades, as investors braced themselves for more Federal Reserve rate hikes to combat inflation. was deployed.

* The US central bank on Wednesday raised interest rates by 75 basis points and indicated further hikes.

* The target interest rate was raised to a range of 3.00%-3.25% and the cost of credit increased to 4.40% by the end of the year before new “dot plot” projections hit a maximum of 4.60% in 2023.

* Fed Chairman Jerome Powell said yields fell from Wednesday’s high as the so-called “dot plot” of rate expectations does not represent a plan or commitment because of the difficulty of predicting the trajectory of the economy.

* Benchmark 10-year Treasury yields rose from their four-month low on August 2 on hopes that the Fed will continue to tighten monetary policy and keep rates in check for longer, even if it intends to stunt growth. Take the risk

* Powell said central bank officials are “strongly determined” to bring inflation below the highest level in four decades and “will keep it until the job is done.”

* Traders also focused on Thursday on whether Japan was selling Treasuries to halt the yen’s slide. Japan is the largest foreign holder of the US Treasury with $1.23 trillion in assets as of July, according to government data.

* The two-year Treasury yield was trading at 4.105%, up from 4.132% earlier, the highest since October 2007. The benchmark 10-year US Treasury yield is 3.662%, the highest since February 2011.

* The yield curve between the 2-year and 10-year notes inverted by -58 basis points, the highest since at least 2000, indicating growing concern about an impending recession.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
Latest news
Related news
- Advertisement -


Please enter your comment!
Please enter your name here