- The benchmark 10-year Treasury yield rose to 5.17% Friday after reaching its highest rate since June 2007 on Thursday. The 30-year bond was flat at 5.463% after surging to levels not seen since 2004, and the 2-year yield was little changed at 4.899%.
- A global bond selloff slowed Friday, with eurozone and Japanese government bond yields edging lower after Japanese government bonds, U.K. gilts, German bunds, and other eurozone bonds hit fresh highs earlier in the week.
- Traders last priced in a nearly 71% chance of an October rate hike, according to the CME FedWatch tool, after hawkish comments from Federal Reserve Governor Michael Barr and a purchasing managers' index report that hit its highest level in more than four years.
- ING strategists said rate hike fears are discounted at this point but government bond yields are primed to remain under pressure from debt dynamics, expecting some re-widening in swap spreads, especially in the 10-year area.
引述
“further policy adjustments”
“Ahead, we think that there are enough rate hike fears discounted at this juncture, and certainly enough to take care of perceived inflation risks”
“But, government bond yields are primed to remain under pressure on a pure debt dynamic theory, which translates into pressure for some re-widening in swap spreads, and especially in the 10yr area.”