Several parts of the U.S. Treasury yield curve are reaching deeper levels of inversion, a sign that bond investors are increasingly worried about an economic slowdown as the Federal Reserve looks set to raise interest rates further.
An inverted yield curve occurs when yields on shorter-dated Treasuries rise above those for longer-term ones, reflecting bets that the central bank will need to cut rates to buoy an economy hurt by higher borrowing costs.
"Keeping rates higher for longer increases the chance that we move into a downturn," said Janet Rilling, a senior portfolio manager and the head of the Plus Fixed Income team at Allspring Global Investments. "So it is a logical reaction from investors that they would then expect, at some point, that the Fed's going to have to be more aggressive in cutting."on Thursday backed expectations that the Fed will keep interest rates higher for longer.
The spread between one- and 30-year Treasury yields was as wide as 153 basis points on Wednesday, its biggest gap since 1981. The spread narrowed slightly on Thursday, to 152 basis points.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Treasury yields climb as investors digest Fed Chair Powell’s interest rate commentsU.S. Treasury yields rose on Thursday as investors considered what could be next for interest rates after Fed Chair Powell gave hints about the policy outlook.
Baca lebih lajut »
Here's the bit of good news tucked behind a deeply inverted Treasury yield curveThe 2-year, 10-year yield spread, thought by many analysts to be screaming "recession" over the past year, may be consistent with a soft-landing...
Baca lebih lajut »
US yield curve inversions deepen as Fed signals higher ratesSeveral parts of the U.S. Treasury yield curve have reached deeper levels of inversion, a sign that bond investors are increasingly worried about an economic slowdown as the Federal Reserve looks set to raise interest rates further.
Baca lebih lajut »
2-year Treasury yield surges to highest since March after GDP reportTreasury yields shot higher early Thursday after revised U.S. GDP figures showed the economy grew at an annualized pace of 2% during the first quarter,...
Baca lebih lajut »
Treasury yields dip as investors weigh interest rate outlookU.S. Treasury yields fell on Wednesday as investors considered the path ahead for interest rates and awaited fresh comments from Fed Chairman Jerome Powell.
Baca lebih lajut »