As oil prices continue to rise, traders are further betting that the Federal Reserve will raise interest rates as soon as next week, and US Treasury yields have risen to a new multi-year high. US Treasury yields for various maturities rose 6 to 8 basis points. Among them, the 30-year US Treasury yield rose to the highest level since 2007, while the 2-year US Treasury yield broke 4.5% for the first time since 2024. Traders have raised the probability that the Federal Reserve will raise interest rates next week to about 70%, and have fully taken into account expectations for an interest rate hike in October at the latest, which was in December. The sell-off in US bonds boosted the expected yield of the 30-year US bond bid at 1:00:00 p.m. New York time. This time, we will renew the issuance of $22 billion of 30-year treasury bonds, with an implied yield of about 5.35%, which is higher than the winning bid yield of previous 30-year US bond sales since 2001. An hour later, the US Treasury plans to repurchase up to 6 billion US dollars of 10-20 year US bonds. The repurchase scale has been raised from the initial 2 billion US dollars. The Treasury Department unexpectedly announced an expansion of the scale of repurchases on August 19, aimed at curbing the rise in long-term US bond yields.
Zhitongcaijing · 2d ago
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As oil prices continue to rise, traders are further betting that the Federal Reserve will raise interest rates as soon as next week, and US Treasury yields have risen to a new multi-year high. US Treasury yields for various maturities rose 6 to 8 basis points. Among them, the 30-year US Treasury yield rose to the highest level since 2007, while the 2-year US Treasury yield broke 4.5% for the first time since 2024. Traders have raised the probability that the Federal Reserve will raise interest rates next week to about 70%, and have fully taken into account expectations for an interest rate hike in October at the latest, which was in December. The sell-off in US bonds boosted the expected yield of the 30-year US bond bid at 1:00:00 p.m. New York time. This time, we will renew the issuance of $22 billion of 30-year treasury bonds, with an implied yield of about 5.35%, which is higher than the winning bid yield of previous 30-year US bond sales since 2001. An hour later, the US Treasury plans to repurchase up to 6 billion US dollars of 10-20 year US bonds. The repurchase scale has been raised from the initial 2 billion US dollars. The Treasury Department unexpectedly announced an expansion of the scale of repurchases on August 19, aimed at curbing the rise in long-term US bond yields.
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