U.S. Treasury yields nudge higher ahead of Fed meeting; recession risk in focus
U.S. Treasury yields rose on Monday as investors geared up for a big week of corporate earnings and a key policy decision from the Federal Reserve.
The yield on the benchmark 10-year Treasury note rose 3 basis points to 2.82% while the yield on the 30-year Treasury bond was up 5 basis points at 3.046%. Yields move inversely to prices and a basis point is equal to 0.01%.
The yield on the 2-year note was up 4 basis points at 3.033%, maintaining the inversion of the closely watched 2-year/10-year yield curve that markets often interpret as a signal of an impending recession.
Much of this week’s focus will center on the U.S. Federal Reserve’s two-day policy meeting, concluding on Wednesday, with economists broadly expecting a 75 basis point hike to interest rates.
The Fed is attempting to reel in inflation while navigating a backdrop of slowing growth, as evidenced by a slew of weaker-than-expected data on business activity and jobs published last week.
Treasury Secretary Janet Yellen told NBC on Sunday that while there are signs that the U.S. economy is at risk of recession, a downturn is not inevitable.
Wall Street will be guided this week by a deluge of major corporate earnings reports, including from tech behemoths Alphabet, Amazon, Apple and Microsoft.
Auctions will be held Monday for $54 billion of 13-week Treasury bills and $42 billion of 26-week bills, along with $45 billion of 2-year notes.
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