December 2, 2022

Treasury yields rise as recession fears spread

Treasury yields rise as recession fears spread

Treasury yields rose across the board on Wednesday as recession fears spread among investors, and markets looked forward to the release of housing market data.

return on 10 years treasury It was last at 4.059, up 6.1 basis points after hovering below the key 4% on Tuesday.

sensitive politics 2 year treasury The yield rose about 4 basis points to 4.478%.

Yields and prices have an inverse relationship and one basis point is equal to 0.01%.

Recession fears are mounting among investors as the Federal Reserve continues to follow a hawkish path lined with higher interest rates.

This has begun to filter into earnings expectations, with some companies and analysts revising their forecasts downward for the coming quarters.

A fourth consecutive rate hike is now widely expected from the central bank at their meeting in early November, and Fed spokesmen have indicated that trend may continue.

speaking in Event On Tuesday, Minneapolis Fed President Neil Kashkari said he sees no reason not to push the central bank’s benchmark interest rate above 4.75% in order to tackle inflation. These levels were last seen in the first half of 2006.

More federal speakers are scheduled to speak on Wednesday, and housing starts and building permits data will be released. This may give traders more insights into the state of the US economy and the impact of economic developments on consumers.