Treasury yields receded on Tuesday after major inflation reports showed price increases slightly smaller than expected.
Benchmark yield 10-year government bond At 2:46 pm Eastern Standard Time, it fell 4.7 basis points to 1.277%.Yield 30-year government bond Slided 5.6 basis points at 1.848%. Yield is inversely proportional to price, and one basis point is equivalent to 0.01%.
NS Consumer price index August was up 5.3% year-on-year, slightly below Dow Jones’ consensus forecast of 5.4%. Core CPI, excluding volatile food and energy prices, rose only 0.1% month-on-month, below expectations of 0.3%.
“While there is a glimpse of hope that prices are finally starting to normalize as inflation is lighter than expected, we are not completely at the limit when it comes to supply chain problems and raw material shortages.” Said Mike Loewengart of E * TRADE Financial.
The Federal Reserve Board, which is considering when to start tightening monetary policy, is closely monitoring inflation data. The Federal Reserve Board will launch its latest two-day policy meeting next Tuesday.
Stephen Bell of BMO Global Asset Management said on Tuesday that he hopes to confirm plans for the Fed to begin tapering bond purchases at the end of the year.
He said it is currently priced on the market and is expected to pay attention to when the Fed begins to raise interest rates depending on inflation and employment data.
“This week’s numbers may indicate that inflation has cooled slightly month-on-month, but it’s well above the 2% target, preventing the Fed from triggering rate hikes,” Bell said. It’s employment. ” ..
The number of non-farm payrolls 235,000 in august, 720,000 new positions far below expectations.
10-year decline in yields after inflation data
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