Data come as an unwelcome surprise to investors, who appeared in recent days to be warming to bonds again
In recent trading, the yield on the benchmark 10-year US Treasury note was 3.028%, according to Tradeweb, up from 2.946% right before the data release and 2.990% at Tuesday’s close.
The two-year yield, more sensitive to the near-term outlook for interest rates set by the Fed, jumped to 2.713% from 2.608% before the data and 2.623% Tuesday.
Wednesday’s data came as an unwelcome surprise to investors, who appeared in recent days to be warming to bonds again after a brutal several months marked by escalating concerns about inflation and the Federal Reserve’s response.
The 10-year yield had settled Friday at 3.124%, its highest close since November 2018 and near its highest level in more than a decade. It then fell earlier this week, amid sharp declines in riskier assets and hopes that inflationary pressures might be easing.
Write to Sam Goldfarb at [email protected]
Credit: www.Businesshala.com /