US Treasury bonds fell. Oil prices have rebounded from a three-week low, prompting the market to re-bet on the Fed's interest rate hike; at the same time, Google's parent company Alphabet Inc. plans to issue a huge corporate bond. US Treasury yields for each term rose by 2 to 4 basis points, with short-term yields rising the most. Higher oil prices have fueled expectations of interest rate hikes, and media reports say that if the inflation data released in the next few weeks is too hot, Federal Reserve Chairman Kevin Walsh is preparing to raise interest rates, further strengthening this expectation. Molly Brooks, an American interest rate strategist at TD Securities, said, “The Federal Reserve may indeed need to actually raise interest rates to prove that it is serious about fighting inflation.” The US will release key inflation data such as the July Consumer Price Index and Producer Price Index next week, while the July employment report is scheduled to be released this Friday. The Federal Reserve's dual mission includes maintaining price stability and achieving full employment, so a weak labor market may also limit its willingness to raise interest rates to reduce inflation. The yield on longer-term treasury bonds hit an intraday high after Alphabet announced that it would issue 10 parts of the bond to raise up to $25 billion.
Zhitongcaijing · 3d ago
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US Treasury bonds fell. Oil prices have rebounded from a three-week low, prompting the market to re-bet on the Fed's interest rate hike; at the same time, Google's parent company Alphabet Inc. plans to issue a huge corporate bond. US Treasury yields for each term rose by 2 to 4 basis points, with short-term yields rising the most. Higher oil prices have fueled expectations of interest rate hikes, and media reports say that if the inflation data released in the next few weeks is too hot, Federal Reserve Chairman Kevin Walsh is preparing to raise interest rates, further strengthening this expectation. Molly Brooks, an American interest rate strategist at TD Securities, said, “The Federal Reserve may indeed need to actually raise interest rates to prove that it is serious about fighting inflation.” The US will release key inflation data such as the July Consumer Price Index and Producer Price Index next week, while the July employment report is scheduled to be released this Friday. The Federal Reserve's dual mission includes maintaining price stability and achieving full employment, so a weak labor market may also limit its willingness to raise interest rates to reduce inflation. The yield on longer-term treasury bonds hit an intraday high after Alphabet announced that it would issue 10 parts of the bond to raise up to $25 billion.
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