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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (56756)

6/29/2023 12:47:37 PM

From: Johnny Canuck

Read Replies (1) | Respond to of 67735

Treasury yields climb as investors digest Fed Chair Powell’s interest rate comments
Published Thu, Jun 29 20234:49 AM EDTUpdated An Hour Ago

Sophie Kiderlin @in/sophie-kiderlin-b327b914a/ @SKiderlin

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In this article

US2Y+0.162 (0.00%)

US10Y+0.146 (0.00%)

U.S. Treasury yields rose on Thursday as investors considered what could be next for interest rates after Federal Reserve Chairman Jerome Powell gave new hints about the monetary policy outlook.

At 4:11 a.m. ET the yield on the 10-year Treasury

was up by over three basis points to 3.7505%. The 2-year Treasury
was last trading almost four basis points higher at 4.7617%.

Yields and prices move in opposite directions. One basis point equals 0.01%.

Treasurys

TICKER COMPANY YIELD CHANGE %CHANGE

US1M	U.S. 1 Month Treasury	5.124	0.015
US3M	U.S. 3 Month Treasury	5.354	0.023
US6M	U.S. 6 Month Treasury	5.504	0.045
US1Y	U.S. 1 Year Treasury	5.435	0.093
US2Y	U.S. 2 Year Treasury	4.884	0.162
US10Y	U.S. 10 Year Treasury	3.858	0.146
US30Y	U.S. 30 Year Treasury	3.916	0.112

Investors weighed the outlook for interest rates after Fed Chair Powell said on Wednesday that policymakers are expecting further restriction. Speaking at a European Central Bank forum in Sintra, Portugal, on Wednesday, Powell also said he would not exclude the possibility of rate hikes being announced at consecutive Fed policy meetings.

In recent weeks, he had suggested that inflation is still running too high and rates needed to go higher in order for it to come back down.

This has sparked concerns among many investors who fear keeping rates elevated for longer or increasing them more will drag the U.S. economy into a recession. Powell addressed these concerns Wednesday, saying an economic downturn was possible, but not “the most likely case.”

Further remarks are expected from Powell on Thursday, when he is slated to speak with the governor of the Bank of Spain at a conference in Madrid, Spain.

Also on Thursday, initial weekly jobless claims figures and pending home sales data are due. Investors are also looking ahead to Friday, when key inflation data in the form of the personal consumption expenditure price index is due