US Treasury yields soared yesterday following the announcement of the agenda of a meeting held last month by the Federal Open Market Committee (FOMC). It has become clear that the authorities are aggressively tightening to prevent inflation from becoming established.
In the agenda of the June meeting, authorities said, “If inflation pressures continue,More restrainingIt was shown that officials see the possibility of taking action. This has increased the selling pressure on US Treasuries. Yields on 2-year and 3-year bonds, which are relatively sensitive to monetary policy, rose by more than 18 basis points (bp, 1bp = 0.01%) on this day alone, putting them back in the 3% range.
Federal Reserve Board (FRB) Headquarters in Washington
Photographer: Al Drago/Bloomberg
FOMC agenda, “more restrained” interest rates possible-if inflation continues
The index 10-year bond yield rose by more than 12bp to 2.93%. It turned up from a low level (2.74%) during trading hours.
“Inflation was mentioned 90 times in the agenda, while recession was zero,” said Ian Ringen, head of interest rate strategy at BMO Capital Markets. “The perception that the authorities’ measures will slow growth for the foreseeable future is in good agreement with the ongoing monetary policy trade-offs amid rising recession risk, but the authorities are still committed to raising interest rates.” It pointed out.
Meanwhile, the 30-year bond yield temporarily fell below 3% in trading on the 6th. It is the first time since May that the level has fallen below this level.
Original title:
news-rsf-original-reference paywall">Treasury Yields Surge as Fed Minutes Underscore Inflation Fight(excerpt)