Treasury Two-Year Yield Surges as CPI Shock Spurs Fed Repricing - BitcoinEthereumNews.com
KabuhayanTreasury Two-Year Yield Surges as CPI Shock Spurs Fed Repricing06 / 12 / 2022Balita ng Ethereum ng Bitcoin (Bloomberg) — Yields on benchmark Treasury two-year notes surged again Monday as Fridays US inflation surprise spurred investors to price in more aggressive Federal Reserve rate hikes. Karamihan Basahin mula sa Bloomberg The yield climbed as much as 9 basis points to 3.15%, the highest since 2007 after data showed on Friday that US May consumer prices exceeded even the highest economist estimate in a Bloomberg survey. Investors are awaiting the central banks updated projections on the US economy, inflation and the federal funds rate when it releases its policy decision on Wednesday. Traders see 50-50 odds of the Fed raising rates by three-quarters of a percentage point in July, while Barclays Plc became the first major bank to predict this move could come as early as next week. “Fed Chair Powell may suggest that policy makers won‘t rule out a rate hike of more than 50 basis points,” Naokazu Koshimizu, a senior rates strategist at Nomura Securities in Tokyo, wrote in a note on this week’s meeting. “But the upward bias for Treasury yields is at extreme levels, so once the market prices in the probability