The Zhitong Finance App learned that investors in the US Treasury bond market are turning their attention to holding government bonds with a shorter term — a deal that is betting that the Federal Reserve will eventually win in the fight against inflation. In the few days since the Federal Reserve raised interest rates for the first time since 2023 last week, the two-year US Treasury yield has soared to a multi-year high of about 4.75%. This is the latest step in the sell-off of the underlying bond. Futures market pricing shows that monetary policy will be tightened by 80 basis points in the coming year, which shows that Chairman Kevin Warsh's pledge to go all out in the fight against inflation is winning the trust of traders.
Zhitongcaijing · 1d ago
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The Zhitong Finance App learned that investors in the US Treasury bond market are turning their attention to holding government bonds with a shorter term — a deal that is betting that the Federal Reserve will eventually win in the fight against inflation. In the few days since the Federal Reserve raised interest rates for the first time since 2023 last week, the two-year US Treasury yield has soared to a multi-year high of about 4.75%. This is the latest step in the sell-off of the underlying bond. Futures market pricing shows that monetary policy will be tightened by 80 basis points in the coming year, which shows that Chairman Kevin Warsh's pledge to go all out in the fight against inflation is winning the trust of traders.
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