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US bonds from 5 to 30 years fall into negative territory

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US bonds from 5 to 30 years fall into negative territory

This Monday the 5-30 year US bond yield curve has fallen into negative territory for the first time since 2006 after a massive sale. meanwhile go short-term bonds jump to their highest level since 2019 according to Dhara Ranasinghe on Yahoo Finance.

While parts of the yield curve, namely 5-10-year and 3-10-year bonds, had already inverted last week, the drop in the gap between the 5-year and 30-year bond market maturities world’s largest in negative territory necessary. The US central bank’s aggressive approach to reining in inflation could hurt growth.

“That is exactly what the bond market is pricing in: that the Fed’s policy response is going to curb economic growth sharply,” he said. Peter Chatwell, Head of Multi-Asset Strategy at Mizuho Bank.

The difference between 5-year and 30-year US Treasury yields fell below 0 for the first time since February 2006 at least 3.5 basis points. The differential has collapsed since 53.5 bp positive earlier this month.

Meanwhile, the two-year treasury yield climbed up to 2.41%, its highest level since the beginning of 2019 and rose by around 7 pounds on day.

Ten-year bond yields pushed determined above the 2.5% marker, hitting their highest level since April 2019.

The break between 5-year and 10-year yields narrowed to around minus 13 poundsfilm doses further into inverted territory.

Bank of America (BofA) and Citi joined a small but growing number of major investment banks on Friday that called more aggressive interest rate hikes by the US Federal Reserve in a context of soaring inflation and aggressive comments from politicians.

“There is real concern that the monetary tightening needed to bring inflation back on target, particularly in the US, could trigger, at best, an economic slowdown or, at worst, a recession across the board. rule,” he said. Stuart Cole, chief macroeconomist at Equiti Capital.

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