Arabic version: ارتفاع عوائد سندات الخزانة مع تزايد الرهانات على رفع الفائدة في ديسمبر
According to Cnbc, Treasury yields edged higher on Friday as expectations for a Federal Reserve rate hike in December strengthened. The benchmark 10-year U.S. Treasury note yield rose 2 basis points to 5.1271%, while the 30-year Treasury bond yield gained 3 basis points to 5.4602%.
The 2-year Treasury note yield, which is generally more sensitive to short-term Federal Reserve interest-rate decisions, moved in the opposite direction. It was down 1 basis point at 4.8525%. A basis point equals 0.01%, and Treasury yields move inversely to prices.
Friday’s moves followed a sharp rise in the prior session. The 10-year yield jumped more than 13 basis points to above 5% on Thursday, while the 2-year yield climbed more than 15 basis points.
Traders were pricing in a December rate increase as a near certainty. CME Group’s FedWatch tool showed 100% odds of a rise at the Dec. 9 meeting, with nearly 87% odds of a 25-basis-point increase and about 13% odds of a 50-basis-point increase.
Energy inflation also remained in focus. Oil was set for its second weekly decline as prospects for renewed U.S. strikes against Iran receded. In early Friday trade, December U.S. West Texas Intermediate futures were down 0.1% at $88.63 a barrel, while Brent crude was up 0.3% at $96.11. October’s producer price index, a measure of wholesale inflation, was due later Friday and was expected to show 0.4% growth, compared with 1.3% in September’s report.
