Stay updated on US Treasury bonds with our free subscription.
Receive a daily email digest, myFT Daily Digest, summarizing the latest news regarding US Treasury bonds every morning.
US Treasury yields have reached a nine-month high due to increased borrowing by the government. The 10-year Treasury yield rose by 0.11 percentage points to 4.19%, following the government’s announcement and strong private payrolls data. Fitch’s unexpected downgrade of Washington’s credit rating also had an impact on the market. The Treasury plans to increase its issuance of long-term debt in order to fill the gap between tax revenue and government spending.
Investors are concerned about the possibility of a “soft landing” for the US economy, which could lead to a decrease in interest rates and borrowing costs. This has led to the selling of longer dated bonds. Hedge fund manager Bill Ackman has also expressed his pessimism by shorting US 30-year debt, citing the large deficits in the country.
The US stock market experienced a slight decline, with the S&P 500 falling 0.3% and the Nasdaq Composite dropping 0.1%. This decline is attributed to falling earnings and rising bond yields. The Stoxx Europe 600 index also ended the day down by 0.6%, continuing its three-day losing streak.
Sterling weakened against the dollar, reaching its lowest level since late June, after the Bank of England raised its benchmark rate to 5.25%. The central bank’s decision was expected by investors due to falling inflation in the UK. However, the door is still open for further tightening in the future.
In Asian markets, Hong Kong’s Hang Seng index, South Korea’s Kospi, and Japan’s Topix all experienced declines, while China’s CSI 300 index saw a 0.9% increase due to positive services activity data.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
