Thursday, January 17, 2019
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US Treasury Yields Recorded Highest Since 2011

US Treasury yields recorded highs on Thursday (local time). 10-year yield has jumped to its highest level since June 2011, and short-term yields were the highest in more than a decade. The major US economic indicators released this day were strong, leading to boost the Federal Reserve’s additional interest rate.


The yield on the US 10-year Treasury bond was 3.183%, rising about 12bp in the late New York market, highest since June 2011.


The 30-year yield, which is sensitive to long-term inflation outlook, was 3.342%, rising more than 12.5bp late in New York. It is the highest since September 2014.


Two-year yields, sensitive to the Fed’s interest rate policy, rose 2.876 percent, increasing 6.1bp late in New York. It is the highest since June 2008.


“The market response to the economic indicators was the largest observed recently,” said Jintanuzo, senior portfolio manager at Columbia Threaded Investment.


Due to the strong US economic indicators, the Fed is likely to raise additional interest rates this December. The Fed has raised interest rates three times this year. Federal Reserve Chairman Jerome Powell gave a “positive” outlook on the US economy in his speech the day before.


Earlier, Charles Evans, the Federal Reserve Bank of Chicago’s, predicted that the rate might rise on December.


The US Manufacturing PMI, released by the US Institute of Supply Management (ISM), rose 3.1 points to 61.6, highest since August 1997 even though the market expected to have slowed to 58.0.

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