Treasuries Drop as 2- to 5-Basis-Point Yield Gains Lift Fed Hike Bets
Updated
Updated · Bloomberg · Jun 8
Treasuries Drop as 2- to 5-Basis-Point Yield Gains Lift Fed Hike Bets
3 articles · Updated · Bloomberg · Jun 8
Summary
Asian trading Monday pushed Treasury yields up about 2 to 5 basis points across the curve, sending bond prices lower as investors priced in a greater chance of Federal Reserve rate hikes.
Five- and two-year notes led the move, with the sharpest increases hitting shorter-dated maturities that are most sensitive to shifts in Fed policy expectations.
Stronger jobs data helped drive that repricing, reinforcing the view that the Fed may need to keep policy tighter for longer.
Escalating Iran-linked tensions in the Middle East added to the selloff by stoking inflation concerns, giving markets another reason to demand higher yields.