U.S. Treasury yields fell on Tuesday (10th) as trading resumed after Columbus Day as investors assessed the potential geopolitical and economic impact of the war between Israel and Hamas.
At 6:05 a.m. ET, the 2-year Treasury yield fell 8.4 basis points to 4.995%.10-Year Treasury Bond YieldIt fell 11.9 basis points to 4.663%.
Yields and prices move in opposite directions. 1 basis point equals 0.01 percentage point.
Concerns over the impact of the conflict between Israel and Hamas continue, with investors considering whether it will affect markets and the global economy. Investors have piled into government bonds, traditionally seen as safer investments, sending Treasury yields lower.
The Palestinian militant group Hamas launched an attack on Israel on Saturday (7th). According to the latest figures, more than 1,500 people have died so far and thousands more have been injured.
The Israeli military said on Tuesday it had ensured security on the Israeli-Gaza border while continuing air strikes in the Hamas-controlled Gaza corridor.
Elsewhere, Federal Reserve officials gave hints on the outlook for interest rates on Monday (9th).
Fed Vice Chairman Thomas Jefferson said the Fed needs to act cautiously after the recent rise in Treasury bond yields, while Dallas Fed President Logan said the surge in yields may mean there is less need for further interest rate hikes. Fed officials are expected to make further comments on Tuesday.
The Federal Reserve will start raising interest rates in March 2022 with the aim of easing inflation and cooling the economy. This often triggers concerns that the speed and level of interest rate increases will lead to an economic recession.
The International Monetary Fund (IMF) on Tuesday raised its 2023 U.S. economic growth forecast by 0.3 percentage points to 2.1%, citing consumer resilience and strong business investment.
2023-10-10 10:12:53
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