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Karen Brettell

TREASURIES-U.S. Treasury yield curve flattens as Fed seen more proactive on inflation

Jun 18 2021

(Updates prices) By Karen Brettell NEW YORK, June 18 Long-dated U.S. Treasury yields fell on Friday and the yield curve continued to flatten as market participants bet that the Federal Reserve will act sooner to clamp down on inflation pressures if they persist. The Fed surprised markets on Wednesday when it said that policymakers are forecasting two interest rate hikes in 2023. The statement pushed up two-year and five-year yields, which are the most sensitive to rate changes. Long-dated yields, however, have since dropped, led by declines in 30-year bond yields. Analysts say that many investors are unwinding trades that were betting on higher inflation as the U.S. central bank indicates it will not let price pressures surge as high as some were fearing. “It does seem as though the market has now shifted its view that the Fed’s going to let inflation run wild, to the Fed’s basically going to kill inflation in the cradle,” said Gennadiy Goldberg, an interest rate strategist at TD Securities in New York, adding that "the truth is probably somewhere in the middle." “They are trying to reinforce their control of the narrative. I don’t think they want the narrative to be that the Fed is behind the curve on inflation,” Goldberg said. Yields jumped on Friday after St. Louis Federal Reserve bank President James Bullard said he thinks rate increases will begin next year as inflation rises faster than expected. "We were expecting a good year, a good reopening, but this is a bigger year than we were expecting, more inflation than we were expecting, and I think it's natural that we've tilted a little bit more hawkish here to contain inflationary pressures," Bullard said. Two-year yields rose to 0.2581% after touching 0.284% earlier in the day, which was the highest since April 2020. Five-year yields dipped to 0.8779% after earlier hitting 0.962%, which was the highest since April 5. Bullard's comments "are confirmation on the shift at the Fed, which is now more concerned about upside inflationary pressures," Citigroup analysts Calvin Tse and Kiranpal Singh said in a report on Friday. The yield curve continued to flatten after Bullard's comments. The curve between five-year and 30-year bonds has seen the largest move, flattening to 111 basis points, the smallest yield gap since September. It has flattened from 140 basis points before the Fed statement. Analysts say the move is being exaggerated by investors unwinding crowded trades betting on curve steepening. "We think it’s possible long-end steepeners were being used as a positive carry way of positioning for higher yields, especially with the expected Fed liftoff date nearly two years away, and the unwinds of those positions added flattening pressure," analysts at JPMorgan said in a report on Thursday. The yield curve between two-year and 10-year notes flattened to 122 basis points on Friday, the flattest since February. Benchmark 10-year notes were last at 1.445%. JPMorgan analysts are maintaining a short recommendation on 10-year notes, adding that they think the first rate hike will not be until the second half of 2023 and that they “expect policy will remain accommodative for some time following liftoff.” The fed funds futures market is pricing for rate hikes to begin in February 2023. The cost of borrowing Treasuries in the overnight repurchase agreement market (repo) was at 6 basis points on Friday. It has risen since the Fed on Wednesday raised the interest rate it pays banks on reserves by five basis points to 0.15%, and the rate it pays on overnight reverse repurchase agreements to 0.05% from zero. The fed funds effective rate rose four basis points on Thursday to 10 basis points, the highest since August 2020. Price Current Net Yield % Change (bps) Three-month bills 0.04 0.0406 0.003 Six-month bills 0.0525 0.0532 0.002 Two-year note 99-190/256 0.2581 0.045 Three-year note 99-86/256 0.4744 0.042 Five-year note 99-98/256 0.8779 -0.001 Seven-year note 100-60/256 1.2147 -0.040 10-year note 101-168/256 1.4448 -0.066 20-year bond 104-128/256 1.9754 -0.070 30-year bond 107-212/256 2.0247 -0.076 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) GooU.S. 2-year dollar swap 6.25 -1.25 spread U.S. 3-year dollar swap 7.75 -1.25 spread U.S. 5-year dollar swap 5.00 -1.25 spread U.S. 10-year dollar swap -4.25 -0.75 spread U.S. 30-year dollar swap -31.00 -1.50 spread (Reporting by David Randall Editing by Chizu Nomiyama)

TREASURIES-Yield curve flattens as Fed seen more proactive on inflation

Jun 18 2021

(Adds analyst comment, updates prices) By Karen Brettell NEW YORK, June 18 Long-dated U.S. Treasury yields fell on Friday and the yield curve continued to flatten as market participants bet that the Federal Reserve will act sooner to clamp down on inflation pressures if they persist. The Fed surprised markets on Wednesday when it said that policymakers are forecasting two interest rate hikes in 2023. The statement sent two-year and five-year yields, which are the most sensitive to rate changes, higher. Long-dated yields, however, have since dropped, led by declines in 30-year bond yields. Analysts say that many investors are unwinding trades that were betting on higher inflation as the U.S. central bank indicates it will not let price pressures surge as high as some were fearing. “It does seem as though the market has now shifted its view that the Fed’s going to let inflation run wild, to the Fed’s basically going to kill inflation in the cradle,” said Gennadiy Goldberg, an interest rate strategist at TD Securities in New York, adding that "the truth is probably somewhere in the middle." “They are trying to reinforce their control of the narrative. I don’t think they want the narrative to be that the Fed is behind the curve on inflation,” Goldberg said. Yields jumped on Friday after St. Louis Federal Reserve bank President James Bullard said he thinks rate increases will begin next year as inflation rises faster than expected. "We were expecting a good year, a good reopening, but this is a bigger year than we were expecting, more inflation than we were expecting, and I think it's natural that we've tilted a little bit more hawkish here to contain inflationary pressures," Bullard said. Two-year yields jumped to 0.284%, the highest since April 2020. Five-year yields increased to 0.962%, the highest since April 5. Bullard's comments "are confirmation on the shift at the Fed, which is now more concerned about upside inflationary pressures," Citigroup analysts Calvin Tse and Kiranpal Singh said in a report on Friday. The yield curve continued to flatten after Bullard's comments. The curve between five-year and 30-year bonds has seen the largest move, flattening to 111 basis points, the smallest yield gap since September. It has flattened from 140 basis points before the Fed statement. Analysts say the move is being exaggerated by investors unwinding crowded trades betting on curve steepening. "We think it’s possible long-end steepeners were being used as a positive carry way of positioning for higher yields, especially with the expected Fed liftoff date nearly two years away, and the unwinds of those positions added flattening pressure," analysts at JPMorgan said in a report on Thursday. The yield curve between two-year and 10-year notes flattened to 122 basis points on Friday, the flattest since February. Benchmark 10-year notes were last at 1.485%. JPMorgan analysts are maintaining a short recommendation on 10-year notes, adding that they think the first rate hike will not be until the second half of 2023 and that they “expect policy will remain accommodative for some time following liftoff.” The fed funds futures market is pricing for rate hikes to begin in February 2023. The cost of borrowing Treasuries in the overnight repurchase agreement market (repo) was at 6 basis points on Friday. It has risen since the Fed on Wednesday raised the interest rate it pays banks on reserves by five basis points to 0.15%, and the rate it pays on overnight reverse repurchase agreements to 0.05% from zero. The fed funds effective rate rose four basis points on Thursday to 10 basis points, the highest since August 2020. June 18 Friday 10:19AM New York / 1419 GMT Price Current Net Yield % Change (bps) Three-month bills 0.04 0.0406 0.003 Six-month bills 0.0525 0.0532 0.002 Two-year note 99-191/256 0.2561 0.043 Three-year note 99-72/256 0.493 0.061 Five-year note 99-44/256 0.9218 0.043 Seven-year note 99-244/256 1.257 0.002 10-year note 101-72/256 1.4853 -0.026 20-year bond 104-8/256 2.0033 -0.042 30-year bond 107-48/256 2.0521 -0.049 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 6.25 -1.25 spread U.S. 3-year dollar swap 7.25 -1.75 spread U.S. 5-year dollar swap 4.00 -2.25 spread U.S. 10-year dollar swap -5.25 -1.75 spread U.S. 30-year dollar swap -31.50 -2.00 spread (Reporting by Karen Brettell; editing by Jonathan Oatis and Marguerita Choy)

TREASURIES-Yield curve flattens as Fed seen more proactive on inflation

Jun 18 2021

By Karen Brettell NEW YORK, June 18 Long-dated U.S. Treasury yields fell on Friday and the yield curve continued to flatten, albeit at a slower pace, as market participants bet that the Federal Reserve will act sooner to clamp down on inflation pressures if they persist. The Fed surprised markets on Wednesday when it said that policymakers are forecasting two interest rate hikes in 2023. The statement sent two-year and five-year yields, which are the most sensitive to rate changes, higher. Long-dated yields, however, have since dropped, led by declines in 30-year bond yields. Analysts say that many investors are unwinding trades that were betting on higher inflation as the U.S. central bank indicates it will not let price pressures surge as high as some were fearing. “It does seem as though the market has now shifted its view that the Fed’s going to let inflation run wild, to the Fed’s basically going to kill inflation in the cradle,” said Gennadiy Goldberg, an interest rate strategist at TD Securities in New York, adding that "the truth is probably somewhere in the middle." “They are trying to reinforce their control of the narrative. I don’t think they want the narrative to be that the Fed is behind the curve on inflation,” Goldberg said. Yields jumped on Friday after St. Louis Federal Reserve bank President James Bullard said he thinks rate increases will begin next year as inflation rises faster than expected. "We were expecting a good year, a good reopening, but this is a bigger year than we were expecting, more inflation than we were expecting, and I think it's natural that we've tilted a little bit more hawkish here to contain inflationary pressures," Bullard said. Two-year yields jumped to 0.254%, the highest since April 2020. Five-year yields increased to 0.928%, the highest since April 6. The yield curve continued to flatten after Bullard's comments. The curve between five-year and 30-year bonds has seen the largest move, flattening to 115 basis points on Thursday, the smallest yield gap since November. It has flattened from 140 basis points before the Fed statement. Analysts say the move is being exaggerated by investors unwinding crowded trades betting on curve steepening. "We think it’s possible long-end steepeners were being used as a positive carry way of positioning for higher yields, especially with the expected Fed liftoff date nearly two years away, and the unwinds of those positions added flattening pressure," analysts at JPMorgan said in a report on Thursday. The yield curve between two-year and 10-year notes flattened to 125 basis points on Friday, the flattest since February. Benchmark 10-year notes were last at 1.506%. JPMorgan analysts are maintaining a short recommendation on 10-year notes, adding that they think the first rate hike will not be until the second half of 2023 and that they “expect policy will remain accommodative for some time following liftoff.” The fed funds futures market is pricing for rate hikes to begin in February 2023. The cost of borrowing Treasuries in the overnight repurchase agreement market (repo) was at 6 basis points on Friday. It has risen since the Fed on Wednesday raised the interest rate it pays banks on reserves by five basis points to 0.15%, and the rate it pays on overnight reverse repurchase agreements to 0.05% from zero. The fed funds effective rate rose four basis points on Thursday to 10 basis points, the highest since August 2020. June 18 Friday 9:40AM New York / 1340 GMT Price Current Net Yield % Change (bps) Three-month bills 0.0425 0.0431 0.005 Six-month bills 0.055 0.0558 0.005 Two-year note 99-193/256 0.2521 0.039 Three-year note 99-74/256 0.4903 0.058 Five-year note 99-42/256 0.9234 0.044 Seven-year note 99-214/256 1.2747 0.020 10-year note 101-24/256 1.5056 -0.005 20-year bond 103-188/256 2.0211 -0.024 30-year bond 106-192/256 2.071 -0.030 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 6.25 -1.25 spread U.S. 3-year dollar swap 7.00 -2.00 spread U.S. 5-year dollar swap 5.50 -0.75 spread U.S. 10-year dollar swap -4.25 -0.75 spread U.S. 30-year dollar swap -30.25 -0.75 spread (Reporting by Karen Brettell; editing by Jonathan Oatis)

TREASURIES-Long-dated yields tumble, curve flattens after Fed

Jun 17 2021

By Karen Brettell NEW YORK, June 17 Long-dated yields tumbled on Thursday and the yield curve flattened as some investors appeared to have been caught flat-footed by the U.S. Federal Reserve’s comments that it is in no hurry to pare bond purchases and expects to raise rates in 2023. Yields initially spiked after the Fed said on Wednesday that policymakers expect to increase rates two times in 2023. Two-year and five-year notes, which are the most sensitive to interest changes, saw the largest yield increases. But long-dated yields dropped on Thursday and the yield curve flattened sharply in what appeared to be repositioning from the Fed statement, with people that had been betting on yield curve steepening scrambling to cover those trades. “There were probably several bets that the Fed was going to taper, or at least talk about tapering, and they really didn’t mention it at all, and so I think whoever decided to put a big steepening exposure on is getting stopped out,” said Tom di Galoma, a managing director at Seaport Global Holdings in New York. The biggest move was in the yield curve between five-year notes and 30-year bonds, which flattened as much as 117 basis points, the smallest yield gap since November. The curve has flattened from 140 basis points before the Fed statement. Fed Chair Jerome Powell said there had been initial discussions about when to pull back, a conversation that would be completed in coming months as the economy continues to heal. Many analysts think the Fed will announce plans to taper at its Jackson Hole, Wyoming, economic symposium in August, with bond reductions unlikely to occur until late this year or early next year. Fed funds futures traders are pricing in a hike in January 2023. Some analysts said expectations of hikes sooner could also be denting the inflation outlook. "The market was definitely caught a little bit surprised by two hikes in 2023 ... that takes away from inflation pressures," said Justin Lederer, an interest rate strategist at Cantor Fitzgerald in New York. Benchmark 10-year yields were last 1.511%, after reaching 1.594% on Wednesday. Five-year yields were 0.881%, after rising to a two-month high of 0.913% on Wednesday. Two-year yields reached a one-year high of 0.217% on Thursday, and were last 0.215%. The Treasury saw strong demand for a $16 billion sale of five-year Treasury Inflation-Protected Securities (TIPS), which was likely helped by a sharp sell-off going into the auction. Breakeven rates on the debt, which measure expected annual inflation for the next five years, dropped to 2.30% before the auction, from 2.40% earlier, and rose back to 2.39% in afternoon trading. The cost of borrowing Treasuries in the overnight repurchase agreement market (repo) rose after the Fed on Wednesday raised the interest rate it pays banks on reserves by five basis points to 0.15%, and the rate it pays on overnight reverse repurchase agreements to 0.05% from zero. The move will give some relief to money fund investors who are struggling to find high quality, short-term assets and have faced paltry returns with yields nearing zero. The Fed’s reverse repo operation saw a record $756 billion in demand on Thursday. Overnight repo rates increased to six basis points, from one basis point before the Fed move. Yields on one-month Treasury bills increased to four basis points, from one basis point. Market gauges for liquidity such as the U.S. swap and cash market spreads remained quiet on Thursday. June 17 Thursday 3:07PM New York / 1907 GMT Price Current Net Yield % Change (bps) Three-month bills 0.0375 0.038 -0.010 Six-month bills 0.05 0.0507 -0.007 Two-year note 99-211/256 0.2154 0.010 Three-year note 99-118/256 0.4316 0.024 Five-year note 99-94/256 0.8809 -0.001 Seven-year note 99-244/256 1.257 -0.031 10-year note 101-12/256 1.5108 -0.058 20-year bond 103-88/256 2.0446 -0.098 30-year bond 106-16/256 2.1009 -0.108 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 7.25 0.25 spread U.S. 3-year dollar swap 9.25 0.50 spread U.S. 5-year dollar swap 6.25 -0.50 spread U.S. 10-year dollar swap -3.25 -0.50 spread U.S. 30-year dollar swap -29.50 1.50 spread (Reporting by Karen Brettell; additional reporting by Saikat Chatterjee in London; editing by Jonathan Oatis)

Analysis: Economists eye surging money supply as inflation fears mount

Jun 17 2021

Some economists are warning that surging money supply may exacerbate a rise in U.S. inflation, which is already accelerating at its fastest rate in more than a decade.

TREASURIES-Two-year yields hit one-year highs, long-dated yields dip

Jun 17 2021

By Karen Brettell NEW YORK, June 17 Two-year yields jumped to one-year highs on Thursday while long-dated Treasury yields fell following sharp yield increases on Wednesday after the Federal Reserve said that most policymakers expect two interest rate hikes in 2023. Yields jumped on the Fed's statement with two-year and five-year yields, which are the most sensitive to interest rate changes, leading the move higher. But sooner-than-expected rate hikes may also dampen inflation pressures, which some market participants fear could run out of control as the economy reopens. "The market was definitely caught a little bit surprised by two hikes in 2023, and you’re seeing it with the belly leading the way down," said Justin Lederer, an interest rate strategist at Cantor Fitzgerald in New York. "Bonds now are a little better bid on the idea that takes away some inflation pressures." Long-dated yields also dipped on Thursday after data showed that the number of Americans filing new claims for unemployment benefits increased last week for the first time in more than a month. Benchmark 10-year yields were last 1.553%, after reaching 1.594% on Wednesday. Five-year yields were 0.894%, after rising to a two-month high of 0.913% on Wednesday. Two-year yields reached a one-year high of 0.217% on Thursday, and were last 0.201%. The yield curve between five-year notes and 30-year bonds flattened to 126 basis points, the smallest yield gap since December. Two-year yields were also pressured higher after the Fed on Wednesday raised the interest rate it pays banks on reserves by five basis points to 0.15%, and the rate it pays on overnight reverse repurchase agreements to 0.05% from zero. “The relative value of a two-year or three-year note is in part dependent on what a bank can get in overnight rates, which is now somewhat higher,” said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott in Philadelphia. The cost of borrowing in the overnight repo market increased to 5 basis points on Thursday, from one basis point before the Fed move. Yields on one-month Treasury bills increased to four basis points, from one basis point. The Treasury will sell $16 billion in five-year Treasury Inflation-Protected Securities (TIPS) on Thursday. June 17 Thursday 9:34AM New York / 1334 GMT Price Current Net Yield % Change (bps) Three-month bills 0.0375 0.038 -0.010 Six-month bills 0.05 0.0507 -0.007 Two-year note 99-218/256 0.2013 -0.004 Three-year note 99-130/256 0.4157 0.008 Five-year note 99-78/256 0.8939 0.012 Seven-year note 99-188/256 1.29 0.002 10-year note 100-168/256 1.5532 -0.016 20-year bond 102-84/256 2.1062 -0.037 30-year bond 104-160/256 2.1641 -0.045 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 7.50 0.50 spread U.S. 3-year dollar swap 9.75 1.00 spread U.S. 5-year dollar swap 6.75 0.00 spread U.S. 10-year dollar swap -2.50 0.25 spread U.S. 30-year dollar swap -29.00 2.00 spread (Reporting by Karen Brettell; additional reporting by Saikat Chatterjee in London; editing by Jonathan Oatis)

Fed gives money funds relief with short-term rate adjustments

Jun 16 2021

(Reuters) -The Federal Reserve on Wednesday gave relief to money market investors that have been struggling to find high-quality short-term assets by raising two key short-term rates.

TREASURIES-Yields steady before Fed meeting statement

Jun 15 2021

(Adds data, 20-year auction results, quote, updates prices) By Karen Brettell NEW YORK, June 15 U.S. Treasury yields were steady on Tuesday ahead of the conclusion of the Federal Reserve's two-day meeting on Wednesday, which will be watched for any signals on when the U.S. central bank is likely to begin paring its massive bond purchase program. The Fed is not expected to announce a taper until its August Jackson Hole economic symposium, though it may indicate that it has begun discussions about when it is likely to commence. “There are some expectations surrounding the extent to which the Fed will discuss tapering,” said Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets in New York. The lack of clarity in employment data, however, makes it difficult for the Fed to gauge the strength of the economic recovery and move ahead with any plans to tighten policy. Extended unemployment benefits are not due to end for another several months, while childcare issues remain because many schools are still closed to in-person learning until the beginning of the school year, Lyngen noted. That means that “investors’ expectations are generally in a holding pattern until the fall,” he said. Policymakers will also update their economic projections and markets will focus on whether they upgrade their inflation projections and see a rate hike as likely in 2023. Data on Tuesday showed U.S. retail sales dropped more than expected in May, while producer prices jumped by 6.6% year-over-year during the month, the largest gain since November 2010. Benchmark 10-year yields were little changed on the day at 1.499%. They fell to a three-month low of 1.428% on Friday and have dropped from a one-year high of 1.78% in March. Another key focus at this week’s meeting will be whether the Fed raises the interest its pays on excess reserves (IOER) and on reverse repurchase agreements (repo) as money market investors struggle with a lack of high-quality short-term assets. By raising the IOER, the Fed can ease some downward pressure on short-term rates. Borrowing rates in the overnight repurchase agreement market were at one basis point on Tuesday. Some analysts say the Fed is unlikely to make any adjustments unless the fed funds rate falls below 5 basis points, which it has so far held above. The fed funds rate was at 6 basis points on Monday. The Treasury saw strong demand for a $24 billion sale of 20-year bonds on Tuesday. The debt sold at a high yield of 2.12%, more than one basis point below where it had traded before the auction. The bonds were "very well bid," said Kim Rupert, managing director of global fixed income analysis at Action Economics, in a report. She noted that a $3 billion reduction in the auction's size from May likely helped to boost interest. June 15 Tuesday 3:00PM New York / 1900 GMT Price Current Net Yield % Change (bps) Three-month bills 0.025 0.0253 0.000 Six-month bills 0.04 0.0406 0.000 Two-year note 99-235/256 0.167 0.006 Three-year note 99-186/256 0.3418 0.008 Five-year note 99-212/256 0.7854 -0.002 Seven-year note 100-96/256 1.1936 -0.002 10-year note 101-40/256 1.499 -0.002 20-year bond 102-36/256 2.1176 0.001 30-year bond 103-208/256 2.2003 0.010 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 7.75 0.00 spread U.S. 3-year dollar swap 9.75 0.25 spread U.S. 5-year dollar swap 7.00 0.00 spread U.S. 10-year dollar swap -3.00 -0.25 spread U.S. 30-year dollar swap -32.00 -1.25 spread (Reporting by Karen Brettell; Editing by Dan Grebler)

TREASURIES-Yields rise before Fed meeting statement, retail sales disappoint

Jun 15 2021

By Karen Brettell NEW YORK, June 15 U.S. Treasury yields rose on Tuesday before the Federal Reserve will conclude its two-day meeting on Wednesday, and after data showed that retail sales fell in May. The Fed is not expected to announce any plans to pare its bond purchases until its August Jackson Hole economic symposium, though it may indicate that it has begun discussions about when to taper. “There are some expectations surrounding the extent to which the Fed will discuss tapering,” said Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets in New York. The lack of clarity in employment data, however, makes it difficult for the Fed to gauge the strength of the economic recovery and move ahead with any plans to tighten policy. Extended unemployment benefits are not due to end for another several months while childcare issues remain because many schools also remain closed to in-person learning until the beginning of the school year, Lyngen noted. That means that “investors’ expectations are generally in a holding pattern until the fall,” he said. Policymakers will also update their economic projections and markets will be focused on whether they upgrade their inflation projections and see a rate hike as likely in 2023. Benchmark 10-year yields rose one basis point to 1.511%. They fell to a three-month low of 1.428% on Friday and have dropped from a one-year high of 1.78% in March. The yields rose slightly after data on Tuesday showed that U.S. retail sales fell more than expected in May. Another key focus at this week’s meeting will be whether the Fed raises the interest its pays on excess reserves (IOER) and on reverse repurchase agreements (repo) as money market investors struggle with a lack of high-quality short-term assets. The Fed’s reverse repo facility, which offers approved money managers the option to lend money to the Fed overnight in return for Treasury collateral, set a record $584 billion on Monday. Demand is expected to continue to grow as the Treasury continues to pare issuance of Treasury bills. By raising the IOER the Fed can ease some downward pressure on short-term rates. Borrowing rates in the overnight repurchase agreement market were at one basis point on Tuesday. Some analysts say that the Fed is unlikely to make any adjustments unless the fed funds rate falls below 5 basis points, which it has so far held above. The fed funds rate was at 6 basis points on Monday. The Treasury will sell $24 billion in 20-year bonds on Tuesday. June 15 Tuesday 9:33 AM New York / 1333 GMT Price Current Net Yield % Change (bps) Three-month bills 0.025 0.0253 0.000 Six-month bills 0.04 0.0406 0.000 Two-year note 99-236/256 0.165 0.004 Three-year note 99-188/256 0.3391 0.005 Five-year note 99-206/256 0.7902 0.003 Seven-year note 100-82/256 1.2018 0.006 10-year note 101-12/256 1.5108 0.010 20-year bond 101-232/256 2.132 0.015 30-year bond 103-164/256 2.208 0.018 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 7.75 0.00 spread U.S. 3-year dollar swap 9.50 0.00 spread U.S. 5-year dollar swap 7.00 0.00 spread U.S. 10-year dollar swap -3.00 -0.25 spread U.S. 30-year dollar swap -31.75 -1.00 spread (Reporting by Karen Brettell)

What investors are watching from the Fed: taper talk and inflation

Jun 15 2021

Investors will be scrutinizing the Federal Reserve's comments at the close of its policy meeting on Wednesday for insight on whether the central bank has begun discussing tapering bond purchases and if policymakers are concerned about rising inflation. A possible hike to some key short-term rates is also in focus. Here are topics that investors are focused on:

World News

Khamenei protege wins Iran election amid low turnout

DUBAI (Reuters) -Ebrahim Raisi, a hardline judge who is under U.S. sanctions for human rights abuses, secured victory as expected on Saturday in Iran's presidential election after a contest marked by voter apathy over economic hardships and political restrictions.