June 6, 2023

Fior Markets News Blog

Complete News World

The focus is on treasury yields as investors assess recession risk

The focus is on treasury yields as investors assess recession risk

The return on the US index 10-year treasury bonds It fell to its lowest level in nearly two weeks on Thursday as investors continued to assess the possibility of a recession.

The yield on 10-year Treasuries fell by 4 basis points at 3.117%, while the yield on 10-year Treasuries fell 30 year treasury bonds It fell three basis points to trade at 3.21%. Earlier in the session, the 10-year had fallen below 3.1%. Yields move inversely to prices.

These moves come after Federal Reserve Chairman Jerome Powell told Congress that the US central bank “strongly committed“To cool the rising inflation rate. Market participants are increasingly concerned that tight monetary tightening could push the world’s largest economy into recession.

“At the Fed, we understand the difficulties that high inflation creates,” Powell told the Senate Banking Committee on Wednesday. “We are strongly committed to bringing inflation back down, and we are moving quickly to do so.”

Last week, the Federal Reserve Raising the benchmark funds rate by 75 basis pointsIt is the largest increase since 1994, but it is believed that the tight tightening could mean more downward pressure on growth.

On the data front, initial jobless claims for the week ending June 18 will be released along with current account numbers for the first quarter at 8:30 a.m. ET on Thursday.

The S&P Global Manufacturing PMI for June, the S&P Global Flash Services PMI for June and the Kansas City Fed Manufacturing Survey for June will follow a little later in the session.

See also  A Google employee who learned she was fired

– Sarah Main and Elliot Smith of CNBC contributed to this report.