Treasury yields rose on Monday as traders predicted the Federal Reserve’s next moves in the face of persistently high inflation.
Exact score 10 year treasury Yields rose 6 basis points to 3.508%, hitting their highest level since 2011. Yields above Treasury 2 years bonds rose 8 basis points to 3.94%, trading around levels not seen since 2007.
Output moves inversely with price. One basis point is equal to 0.01%.
The Fed’s two-day meeting will begin on Tuesday, with most market participants expecting another 75 basis point rally by the central bank. However, some analysts have argued that Fed can raise rates completelyor 100 basis points.
It came after inflation rose more than expected in August. The consumer price index rose 0.1% month on month and 8.3% over the past year – well above economists’ expectations. The data has led investors to expect the Fed to double higher interest rates for longer, until prices fall.
Sevens Report’s Tom Essaye wrote: “The 10s-2 spread fell last week and is trading at -46 bps on Friday and is just a few basis points to establish its lowest levels in decades. century,” writes Tom Essaye of the Sevens Report. “The signal from 10s-2s is clear: The economy is going to slow materially and potentially materially in the coming quarters, and that’s a message that I believe we need to continue.” attention.”
– CNBC’s Jeff Cox and Jesse Pound contributed to this report