US bond market: Yields rise after the release of inflation data, 10-year bond yields are expected to rise for the third consecutive week

The U.S. benchmark 10-year Treasury bond yield (yield rate) rose on Friday as economic data showed high

Inflation may continue for a period of time, after yields recorded their biggest two-day drop in about three weeks.

 

The U.S. Department of Labor stated that the producer price index (PPI), which reflects final demand, rose 0.7% last month, slightly higher than expected.

An increase of 0.6%. In the 12 months ending in August, PPI increased by 8.3%, the largest year-on-year increase since November 2010.

 

Investors have been paying close attention to the job market and inflation data, looking for the Federal Reserve Board (FED/Federal Reserve)

May announce signs of starting to scale back large-scale bond purchases.

 

However, the increasing number of new crown cases infected with the Delta variant virus may hinder the economic recovery, which may change the Midland

The policy path of the reserve. On Thursday, U.S. President Biden announced a policy requiring most federal employees to be vaccinated against the new crown

Encourage large companies to require their employees to be vaccinated, otherwise they will be tested weekly.

 

Tom di Galoma, managing director of Seaport Global Holdings, said, “We are implementing a lockdown and once again

The fact that it has caused some damage to the economy has a positive impact on bond yields. ”

 

“Everyone in the economic world sees inflation…it certainly exists, but the market is weakened by the mutated virus

With it, this is indeed the current broader situation. ”

 

The 10-year U.S. Treasury yield rose 4.1 basis points to 1.341%. This week, the yield rose by 3 basis

Point, is expected to rise for the third consecutive week, which will be the longest round of weekly gains since the seven-week streak that ended in mid-March.

 

Since mid-July, the 10-year U.S. Treasury yield has been fluctuating between a high of 1.423% and a low of 1.127%, di Ga

Loma expects this interval to continue until early October.

 

Several Fed officials said this week that the slowdown in employment growth does not necessarily mean that the Fed will reduce its asset purchase plans this year.

Off track, even if the employment report released last week was far below expectations.

 

On Friday, Loretta Mester, President of the Cleveland Federal Reserve Bank, reiterated that she had held

She hopes to reduce the scale of debt purchases this year.

 

On Thursday, the European Central Bank stated that it would slow down the purchase of the emergency bond purchase plan implemented during the COVID-19 pandemic in the coming quarter.

Buy pace.

 

The 30-year bond yield rose by 3.7 basis points to 1.936%.

 

The yield curve of the U.S. Treasury bond yield curve, the difference between the two-year and 10-year Treasury bond yields, which has been the subject of much attention, is 112.2

Basis points, the spread is regarded as an indicator of economic expectations.

 

The yield on the two-year U.S. Treasury bond rose 0.1 basis point to 0.217%.

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