[뉴욕-채권]The 10-year interest rate recovers at 1.1% level… Powell expectations inflation + stimulus expectations

[한국금융신문 장안나 기자] On the 14th (local time), the yield of US Treasury bonds in the New York bond market increased all at once. The 10-year benchmark US bond yield rebounded after three days and rose to 1.10%. The yield curve sharpened in three days.

Jerome Powell, chairman of the Federal Reserve, denying the possibility of an exit strategy, raised inflation expectations, putting upward pressure on the 10-year yield. The expectation of US President-elect Joe Biden’s massive stimulus package, which will be announced after the close of the market, also fueled the increase in profitability.

As of 4 pm, the 10-year yield was 1.129%, up 4.6bp (1bp=0.01%p) compared to the battlefield. The two-year yield, reflecting the interest rate policy outlook, rose 0.2bp to 0.145%. The 30-year yield, which is sensitive to inflation and oil price fluctuations, rose 5.7bp to 1.873%. The 5-year yield increased 1.1bp to 0.480%.

■Key materials in the global bond market

The three indexes of the New York stock market fell below 0.3%. The level was raised by the afternoon awaiting the announcement of a massive stimulus package from US President-elect Joe Biden. Federal Reserve Chairman Jerome Powell’s remarks, denying the possibility of an exit strategy, also worked positively. However, as the strength of information technology stocks slowed due to the surge in US bond yields following expectations of stimulus measures, the index turned to a last-minute decline. The Dow Jones Industrial Average fell for two consecutive days. 68.95 points (0.22%) lower than the battlefield The market was finished at 3991.52. The Standard & Poor’s (S&P) 500 index fell 14.30 points (0.38%) to 3,795.54. The Nasdaq Composite Index fell 16.31 points (0.12%). It was 13,112.64. The two indexes fell in reaction after three days.

US President-elect Joe Biden is expected to announce a $2 trillion stimulus package, CNN reported, citing sources late the previous day. That’s $700 billion more than the amount requested by Senate Representative Chuck Schumer. Biden-elect is scheduled to announce a large-scale fiscal stimulus plan after the market closes.

Jerome Powell, chairman of the Federal Reserve System (Fed), announced that it was too early to discuss exit strategies. Powell said in a webinar (online seminar) held with Professor Markus Brunermeier of Princeton University on the same day, “It is too early to talk about reducing bond purchases when the economy has not reached inflation or employment targets.” He added, “There will be no early rate hike unless there are signs of inflation that could create anxiety.”

Reporter Jang Anna [email protected]

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