Fed officials’ comments focus on rising U.S. bond yields

U.S. Treasury yields rose on Wednesday (22nd) as investors considered the Federal Reserve spokesman\’s latest comments on the outlook for inflation and interest rates.

U.S. Treasury yields rose on Wednesday (22nd) as investors considered the Federal Reserve spokesman\’s latest comments on the outlook for inflation and interest rates.
The 10-year Treasury yield rose 2.7 basis points to 4.41% at 5:50 a.m. ET.
The 2-year Treasury yield rose 3.2 basis points to 4.865%.
One basis point when yield and price move in opposite directions is equal to 0.01 percentage point.
Investors weighed the latest comments from Federal Reserve policymakers while assessing the future direction of inflation and interest rates.
Several Fed officials on Tuesday (21st) urged patience in cutting interest rates as inflation remains above the Fed\’s 2% target.
Fed Governor John Waller said he needs to see more data showing inflation and the economy are slowing before cutting interest rates.
\”The economic development now seems to be closer to the committee\’s expectations,\” he said.
\”Having said that, in the absence of significant labor market weakness, I would need to see a few more months of good inflation data before I feel comfortable supporting an accommodative monetary policy stance.\”
\”Federal Reserve officials also expressed the same view.
Boston Fed President Collins said patience is \”really important\” now; Atlanta Fed President Bostic said he is \”in no rush\” to cut rates.
More Fed officials will speak on Wednesday; minutes of the Fed\’s latest meeting will also be released.
April existing home sales data will also be released.
In other data, UK inflation rose higher than expected on Wednesday to 2.3% on an annual basis, prompting markets to sharply reduce the possibility of a rate cut in June.
Meanwhile, Japan\’s 10-year government bond yield rose to an 11-year high and briefly topped 1% during trading on Wednesday.

Like (0)
Previous May 22, 2024 11:28 am
Next May 22, 2024 11:28 am

Related posts