On Monday, the U.S. 10 Year Treasury yield (US10Y) moved 8 basis points higher to 3.61%, following a Friday jump of 14 basis points. This means that the 10-year Treasury yield has risen 25 basis points since the close on Wednesday, Powell-day, with 11 basis points today and 13 basis points on Friday, to 3.64%, unwinding in three days over a quarter of the large 88-basis point drop since late October.<\/p>\n
On Friday, the yield on the 10-year Treasury note increased as investors examined economic information and comments from Federal Reserve authorities to gauge the outlook for inflation and monetary policy. The 10-year Treasury yield had an increase of 4 basis points, and was being traded at 3.719%. The 2-year Treasury dropped by less than 1 basis point to 4.5%.[0]<\/a><\/sup><\/p>\n The US 2 Year Treasury yield (US2Y) rose by 11 basis points on Monday to 4.41%, which now is above the instrument’s 100-day moving average.[1]<\/a><\/sup> Friday saw a surge of 20 basis points, which has been followed by an increase in the 2-year.[1]<\/a><\/sup> US yields were higher, with the 2yr yield rising 8bp to 4.50% and the 10yr rising 6bp to 3.68%.[2]<\/a><\/sup> The spread between the 2-year and 10-year Treasury notes narrowed slightly to -82 basis points, but during the day dropped to as low as -87 basis points, surpassing the lows from December and the lowest since the early 1980s before there was a late selloff in 10-year Treasury notes.[3]<\/a><\/sup><\/p>\n This week, Richmond Fed President Barkin joined the multitude of Fed officials in expressing their views.[3]<\/a><\/sup> He agreed with the rest of the committee that inflation was still high, thus making it important to “stay the course” and that “we’ve still got a ways to go”.[3]<\/a><\/sup> The two-year Treasury yield has jumped by 37 basis points since the close on Thursday, the day after Powell had spoken: 16 basis points today and 21 basis points on Friday, to 4.46%, unwinding in two days more than half of the 65-basis-point decline from the high in early November.<\/p>\n Investors interpreted Powell\u2019s slumped posture and soft voice, and his struggle to politely answer the same leading questions over and over again, as a promise of a pivot.[4]<\/a><\/sup> Throughout the trading day in the US, equity prices increased but then dropped by the close of the session.[2]<\/a><\/sup><\/p>\n 0. <\/span>“10-year Treasury yield rises, traders look ahead to key U.S. inflation data” CNBC, 10 Feb. 2023, https:\/\/www.cnbc.com\/2023\/02\/10\/us-treasury-yields-investors-await-data-fed-speaker-remarks.html<\/a><\/a><\/p>\n 1. <\/span>“Treasury ETFs slide as yields spike after explosive payrolls report” Seeking Alpha, 6 Feb. 2023, https:\/\/seekingalpha.com\/news\/3932353-treasury-etfs-sink-as-yields-spike-after-explosive-payrolls-report<\/a><\/a><\/p>\n 2. <\/span>“Mixed messages yet a clear one from bond yields” Forex Factory, 9 Feb. 2023, https:\/\/www.forexfactory.com\/news\/1204870-mixed-messages-yet-a-clear-one-from-bond<\/a><\/a><\/p>\n 3. <\/span>“Markets Today: Mixed messages yet a clear one from bond yields | Business Research and Insights” Business Research and Insights, 9 Feb. 2023, https:\/\/business.nab.com.au\/markets-today-mixed-messages-yet-a-clear-one-from-bond-yields-58195\/<\/a><\/a><\/p>\n 4. <\/span>“Delayed Reaction? 2-Year & 10-Year Treasury Yields Jump, Mortgage Rates Spike 40 Basis Points in Two Days to …” WOLF STREET, 6 Feb. 2023, https:\/\/wolfstreet.com\/2023\/02\/06\/delayed-reaction-2-year-10-year-treasury-yields-jump-mortgage-rates-spike-40-basis-points-in-two-days-to-6-39<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" On Monday, the U.S. 10 Year Treasury yield (US10Y) moved 8 basis points higher to 3.61%, following a Friday jump of 14 basis points. This means that the 10-year Treasury yield has risen 25 basis points since the close on Wednesday, Powell-day, with 11 basis points today and 13 basis points on Friday, to 3.64%, unwinding in three days over a quarter of the large 88-basis point drop since late October.<\/p>\n On Friday, the yield on the 10-year Treasury note increased as investors examined economic information and comments from Federal Reserve authorities to gauge the outlook for inflation and monetary policy. The 10-year Treasury yield had an increase of 4 basis points, and was being traded at 3.719%. The 2-year Treasury dropped by less than 1 basis point to 4.5%.[0]<\/a><\/sup><\/p>\n The US 2 Year Treasury yield (US2Y) rose by 11 basis points on Monday to 4.41%, which now is above the instrument’s 100-day moving average.[1]<\/a><\/sup> Friday saw a surge of 20 basis points, which has been followed by an increase in the 2-year.[1]<\/a><\/sup> US yields were higher, with the 2yr yield rising 8bp to 4.50% and the 10yr rising 6bp to 3.68%.[2]<\/a><\/sup> The spread between the 2-year and 10-year Treasury notes narrowed slightly to -82 basis points, but during the day dropped to as low as -87 basis points, surpassing the lows from December and the lowest since the early 1980s before there was a late selloff in 10-year Treasury notes.[3]<\/a><\/sup><\/p>\n This week, Richmond Fed President Barkin joined the multitude of Fed officials in expressing their views.[3]<\/a><\/sup> He agreed with the rest of the committee that inflation was still high, thus making it important to “stay the course” and that “we’ve still got a ways to go”.[3]<\/a><\/sup> The two-year Treasury yield has jumped by 37 basis points since the close on Thursday, the day after Powell had spoken: 16 basis points today and 21 basis points on Friday, to 4.46%, unwinding in two days more than half of the 65-basis-point decline from the high in early November.<\/p>\n Investors interpreted Powell\u2019s slumped posture and soft voice, and his struggle to politely answer the same leading questions over and over again, as a promise of a pivot.[4]<\/a><\/sup> Throughout the trading day in the US, equity prices increased but then dropped by the close of the session.[2]<\/a><\/sup><\/p>\n 0. <\/span>“10-year Treasury yield rises, traders look ahead to key U.S. inflation data” CNBC, 10 Feb. 2023, https:\/\/www.cnbc.com\/2023\/02\/10\/us-treasury-yields-investors-await-data-fed-speaker-remarks.html<\/a><\/a><\/p>\n 1. <\/span>“Treasury ETFs slide as yields spike after explosive payrolls report” Seeking Alpha, 6 Feb. 2023, https:\/\/seekingalpha.com\/news\/3932353-treasury-etfs-sink-as-yields-spike-after-explosive-payrolls-report<\/a><\/a><\/p>\n 2. <\/span>“Mixed messages yet a clear one from bond yields” Forex Factory, 9 Feb. 2023, https:\/\/www.forexfactory.com\/news\/1204870-mixed-messages-yet-a-clear-one-from-bond<\/a><\/a><\/p>\n 3. <\/span>“Markets Today: Mixed messages yet a clear one from bond yields | Business Research and Insights” Business Research and Insights, 9 Feb. 2023, https:\/\/business.nab.com.au\/markets-today-mixed-messages-yet-a-clear-one-from-bond-yields-58195\/<\/a><\/a><\/p>\n 4. <\/span>“Delayed Reaction? 2-Year & 10-Year Treasury Yields Jump, Mortgage Rates Spike 40 Basis Points in Two Days to …” WOLF STREET, 6 Feb. 2023, https:\/\/wolfstreet.com\/2023\/02\/06\/delayed-reaction-2-year-10-year-treasury-yields-jump-mortgage-rates-spike-40-basis-points-in-two-days-to-6-39<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":915,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/916"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=916"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/916\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/915"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=916"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=916"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=916"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}