Market

Bond yields edge higher as traders weigh possibility of jumbo-sized Fed hikes

[ad_1]

Bond yields crept higher on Friday, as investors remained fearful of further Federal Reserve rate increases after a series of hot economic data.

What’s happening
  • The yield on the 2-year Treasury
    TMUBMUSD02Y,
    4.706%

    was 4.69%, up 2.3 basis points. Yields move in the opposite direction to prices.

  • The yield on the 10-year Treasury
    TMUBMUSD10Y,
    3.909%

    was 3.90%, up 4.2 basis points.

  • The yield on the 30-year Treasury
    TMUBMUSD30Y,
    3.954%

    was 3.95%, up 3.1 basis points.

What’s driving markets

Short-term bond yields were near their highest level of the cycle, after producer price data along with speeches from Cleveland Fed President Loretta Mester and St. Louis Fed President James Bullard saw traders begin to price in the possibility of a 50-basis point rate hike in March.

Economists at Goldman Sachs late on Thursday added a rate hike in June to their forecasts. “In light of the stronger growth and firmer inflation news, we are adding a 25bp rate hike in June to our Fed forecast, for a peak funds rate of 5.25-5.5%,” they told clients.

The economic calendar for Friday includes two more Fed officials, Richmond Fed President Tom Barkin and Fed Gov. Michelle Bowman, as well as data on import prices and leading economic indicators. There’s a three-day weekend in observance of Washington’s Birthday on Monday.

[ad_2]

Source link

Jake

Jacob Keiter is a husband, a writer, a journalist, a musician, and a business owner. His journey to becoming a writer was one that was paved with challenges, but ultimately led him to find his true calling. Jacob's early years were marked by a strong desire for creative expression. He was always drawn to music, and in his youth, he played in several bands, chasing the elusive promise of fame and success. However, despite his best efforts, Jacob struggled to find the recognition he craved. It wasn't until he hit a low point in his life that Jacob discovered his love for writing. He turned to writing as a form of therapy during a particularly difficult time, and found that it not only helped him to cope with his struggles, but also allowed him to express himself in a way that he had never been able to before. Jacob's writing skills quickly caught the attention of others, and he soon found himself working as a journalist for The Sun out of Hummelstown. From there, he went on to contribute to a variety of publications, including the American Bee Journal and Referee Magazine. Jacob's writing style is reflective of traditional journalism, but he also infuses his work with a unique voice that sets him apart from others in his field. Despite his success as a writer, Jacob also owns another business, JJ Auto & Home, which specializes in cleaning. Jacob's commitment to excellence is evident in all of his endeavors, whether it be in his writing or in his business ventures. Today, Jacob is the author of two books and continues to inspire others through his writing. His journey to becoming a writer serves as a reminder that sometimes our darkest moments can lead us to our greatest achievements.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *