Yields on U.S. \u200bTreasuries moved lower on Wednesday following a \u200cselloff in the previous session, as uncertainty persisted around the war with Iran and the path of inflation.<\/p>\n
The yield on the benchmark 10-year Treasury note was last down 3.6 basis \u2060points on \u200bthe day at 4.631 per cent. It reached its highest level since January 2025 on Tuesday, surging to 4.687 per cent.<\/p>\n
The 30-year Treasury bond\u2019s yield, which is seen as a barometer of geopolitical and fiscal risk, was last down roughly 2.6 bp \u200bat 5.156 per cent. It briefly touched 5.197 per cent on Tuesday, its \u200chighest since July 2007 before the Global Financial Crisis.<\/p>\n
A selloff in U.S. and global bond markets has taken hold over the past week as peace talks between the U.S. and Iran have stalled and energy prices have remained elevated since the war started in \u200clate February. \u200bBrent crude oil prices \u200cwere just over $108 per barrel on Wednesday after hitting $111 per barrel on Monday.<\/p>\n
\u201cWe\u2019re \u200bat a point with yields and the bond \u2060market selloff where the equity market is starting to take notice,\u201d \u2060said Tim Saurmelch, senior portfolio manager for fixed income at SEI Investments.<\/p>\n
\u201cWhen you get to the point \u200bwhere yield levels become more elevated, the cost of geopolitical uncertainty tends to be a little bit less abstract,\u201d Saurmelch said, noting he expects the Fed to hold rates steady in the near-term.<\/p>\n
Investors are now pricing in a 48.3 per cent chance the Fed could raise rates in December, \u2060and an 90.8 per cent chance it maintains current rates at its next meeting in June, according to the CME FedWatch tool.<\/p>\n
\u201cYesterday\u2019s selloff was based on inflation expectations,\u201d said Eric Jussaume, director of fixed income at Cambridge Trust.<\/p>\n
\u201cI think if you just look at what\u2019s going in the Fed futures market you\u2019re seeing \u2060a big shift from earlier this year,\u201d Jussaume later \u200bnoted.<\/p>\n
The 2-year Treasury note yield, which typically moves in step with interest rate expectations \u2060for the Federal Reserve, was last down 3.9 bps at 4.08 per cent.<\/p>\n
A closely watched part of the U.S. \u200cTreasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, seen as \u200ban indicator of economic expectations, was last at 54.88 bps.<\/p>\n
Minutes from the Fed\u2019s April Federal Open Market Committee meeting will be released later on Wednesday.<\/p>\n
The Treasury Department is slated to auction 20-year bonds on Wednesday, which \u200bmarket participants will watch closely for signs of any cooling investor demand.<\/p>\n","protected":false},"excerpt":{"rendered":"Yields on U.S. \u200bTreasuries moved lower on Wednesday following a \u200cselloff in the previous session, as uncertainty persisted…\n","protected":false},"author":2,"featured_media":682370,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[901,888,902,879,877,903,45,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-682369","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-business","tag-ca","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/682369","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=682369"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/682369\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/682370"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=682369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=682369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=682369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}