{"id":1651115,"date":"2022-09-21T11:51:13","date_gmt":"2022-09-21T15:51:13","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1651115"},"modified":"2022-09-21T11:51:52","modified_gmt":"2022-09-21T15:51:52","slug":"two-year-yields-highest-since-2007-before-fed-decision","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/two-year-yields-highest-since-2007-before-fed-decision\/","title":{"rendered":"Two-year yields highest since 2007 before Fed decision"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftwo-year-yields-highest-since-2007-before-fed-decision%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1651115&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Karen Brettell<\/p>\n<p>NEW YORK (Reuters) \u2013     Two-year Treasury yields hit 4% on Wednesday for the first time since 2007 before the Federal Reserve is expected to hike interest rates by another 75 basis points and indicate further rates are likely as it battles soaring inflation.<\/p>\n<p>Yields have increased this week as investors bet that the Fed will adopt a more hawkish tone and signal that it plans to keep rates high and monetary policy restrictive.<\/p>\n<p>Fed Chairman Jerome Powell is also expected to maintain that the U.S. central bank remains committed to hiking rates even if growth starts to waver.<\/p>\n<p>\u201cHe\u2019s really trying everything he can to make sure that the market understands his commitment to bringing inflation down and this idea that they\u2019re not going to take their foot off the gas at the first sign that the economy is weakening,\u201d said Thomas Simons, a money market economist at Jefferies in New York.<\/p>\n<p>Two-year yields reached 4.008%, the highest since October 2007. Benchmark 10-year note yields were last at 3.557%, after reaching 3.604% on Tuesday, the highest since April 2011.<\/p>\n<p>The closely watched yield curve between two-year and 10-year yields was at minus 45 basis points.<\/p>\n<p>Real yields, which adjust for expected inflation, also dipped on Wednesday. <\/p>\n<p>Five-year yields on Treasury Inflation-Protected Securities (TIPS) fell to 1.303%, from a high of a 1.323% on Tuesday, which was the highest since August 2009. 10-year TIPS yields fell to 1.170%, from 1.219% on Tuesday, the highest since February 2011.<\/p>\n<p>Yields had eased earlier on Wednesday as concerns about an escalation of the war between Russia and Ukraine modestly boosted demand for safe haven U.S. debt.<\/p>\n<p>That might limit the effect of any potential sell-off on a hawkish Fed today.<\/p>\n<p>\u201cIn light of the risk-off backdrop created by the Kremlin\u2019s announcement, it\u2019s difficult to envision an outsized bearish response to the FOMC\u2019s decision; at least not in the long end of the curve,\u201d BMO Capital Markets interest rate strategists Ian Lyngen and Benjamin Jeffery said in a report.<\/p>\n<p>\u201cIf nothing else, the escalation of geopolitical tensions takes 100 bp off the table; although we\u2019re skeptical it was ever under serious consideration,\u201d they said.<\/p>\n<p>Traders are pricing in a 19% chance of a 100 basis points increase on Wednesday.<\/p>\n<p>September 21 Wednesday 11:14AM New York \/ 1514 GMT<\/p>\n<p>                                         Price        Current   Net          <\/p>\n<p>                                                      Yield %   Change          <\/p>\n<p>                                                                (bps)          <\/p>\n<p>           Three-month bills             3.2725       3.3456    -0.002          <\/p>\n<p>           Six-month bills               3.7925       3.9203    0.018          <\/p>\n<p>           Two-year note                 98-157\/256   3.9994    0.035          <\/p>\n<p>           Three-year note               98-176\/256   3.971     0.034          <\/p>\n<p>           Five-year note                97-42\/256    3.7591    0.006          <\/p>\n<p>           Seven-year note               96-140\/256   3.6934    -0.003          <\/p>\n<p>           10-year note                  93-80\/256    3.5573    -0.016          <\/p>\n<p>           20-year bond                  93-244\/256   3.8111    -0.034          <\/p>\n<p>           30-year bond                  89-168\/256   3.5652    -0.016          <\/p>\n<p>           DOLLAR SWAP SPREADS                                            <\/p>\n<p>                                         Last (bps)   Net                 <\/p>\n<p>                                                      Change              <\/p>\n<p>                                                      (bps)               <\/p>\n<p>           U.S. 2-year dollar swap        39.25       1.25                <\/p>\n<p>           spread                                                         <\/p>\n<p>           U.S. 3-year dollar swap        18.25       0.25                <\/p>\n<p>           spread                                                         <\/p>\n<p>           U.S. 5-year dollar swap       8.75         0.00                <\/p>\n<p>           spread                                                         <\/p>\n<p>           U.S. 10-year dollar swap      6.00          -0.50              <\/p>\n<p>           spread                                                         <\/p>\n<p>           U.S. 30-year dollar swap      -32.00        -1.25              <\/p>\n<p>           spread                                                         <\/p>\n<p> (Reporting by Karen Brettell; editing by Jonathan Oatis)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/two-year-yields-highest-since\/file-photo-u-s-one-dollar-banknotes-are-seen-in-front-7\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8K0T0-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8K0T0-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Karen Brettell NEW YORK (Reuters) \u2013 Two-year Treasury yields hit 4% on Wednesday for the first time since 2007 before the Federal Reserve is expected to hike interest rates<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1651115","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1651115","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1651115"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1651115\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1651115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1651115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1651115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}