US Treasury yields retreated from multi-year highs

US Treasury yields fell sharply today, moving away from last week’s levels. who have reached long-term records. Ten-year bond yield decreased immediately by 0.15% – to 4.62%, and for thirty years – by 0.12%, to 4.82%. Analysts notethat this happened for two reasons. The first they consider is the changed expectations of investors regarding the plans of the US Federal Reserve. If last week investors were afraid that the regulator would continue to raise the discount rate, then leaks from the Fed that appeared the day before gave hope that the regulator would not raise the rate after all. “Conversations at the Fed make it clear that the regulator noticed a sharp increase in bond yields and regarded this as an already tightening of monetary conditions in the market, which will also affect the Fed’s decision,” Bloomberg quotes Nomura Holdings strategic analyst Andrew Ticehurst. “Thus, the market has already laid down “In prices, there is hope that the Fed is unlikely to raise rates this year.”

Another reason for the decline in bond yields experts consider worsening of the Middle East conflict between Israel and Palestine. Increased geopolitical instability has led to investors deciding to invest in safe havens, which include US Treasuries, among others – thus the demand for them has increased.

Evgeny Khvostik