US longer-dated Treasury yields rose on Friday, extending their recent sharp move higher after more upbeat economic data reinforced concerns about inflation.<\/p>\n
The 30-year US bond yield hit a fresh 22-year high and the benchmark \u206010-year yield \u200breached a fresh 19-year high.<\/p>\n
Yields have jumped recently on persistent worries about higher inflation.<\/p>\n
New orders for key US manufactured capital goods increased more than expected in August and the previous month\u2019s figures were revised sharply higher, signaling another quarter of robust growth in business spending on equipment \u200bamid an AI buildout.<\/p>\n
The Friday report followed an S&P Global \u200csurvey earlier this week showing a pickup in business activity in September.<\/p>\n
The bullish data has driven up expectations for another interest-rate increase by the Federal Reserve. Traders now see a more than 64% chance of another hike when the US central bank next meets in October, according to CME Group\u2019s FedWatch Tool. That expectation was around \u200c55% a \u200bweek ago.<\/p>\n
The Fed raised rates \u200clast week for the first time since 2023 in an effort to control inflation, which has \u200bsteadily risen in part due to higher fuel prices tied \u2060to the US-Israeli war with Iran. Several Fed officials said this week that additional interest-rate \u2060hikes may be needed to curb the growth in prices.<\/p>\n
\u201cThe only thing that they can do is slow \u200bdemand down,\u201d said John Luke Tyner, head of fixed income and portfolio manager at Aptus Capital Advisors. He said, however, that there is a risk of the Fed raising rates too far.<\/p>\n
\u201cYou always do it too much.\u201d<\/p>\n
Oil prices eased on Friday as investors weighed the possibility of a truce between the US and Iran, relieving some of \u2060the upward pressure on yields.<\/p>\n
A $70 billion auction of five-year notes this week that drew weak demand added to the recent selloff in bond prices, which move inversely to yields.<\/p>\n
Long-term yields also mostly continued to climb this week despite another Treasury buyback operation, an intervention the government said is aimed at addressing liquidity in the Treasury market.<\/p>\n
Next week brings more key data for investors and the \u2060outlook for rates: the September US payrolls report and the \u200bmonthly read of the personal consumption expenditures price index (PCE), which is closely followed by the Fed and could \u2060offer insight into inflation trends.<\/p>\n
The yield on the 30-year bond was last up 2.4 basis points at 5.486%. It reached 5.5319%, the \u200chighest since 2004.<\/p>\n
The yield on the benchmark US 10-year Treasury note was last up 0.3 basis point at 5.165%. \u200bIt earlier reached 5.2297%, the highest since 2007.<\/p>\n
A closely watched part of the US Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, seen as an indicator of economic expectations, was at 30.3 basis points.<\/p>\n
The two-year US Treasury yield, which \u200btypically moves in step with interest rate expectations for the Fed, was down 3.5 basis points at 4.86%.<\/p>\n","protected":false},"excerpt":{"rendered":"US longer-dated Treasury yields rose on Friday, extending their recent sharp move higher after more upbeat economic data…\n","protected":false},"author":2,"featured_media":909690,"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-909689","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\/909689","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=909689"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/909689\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/909690"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=909689"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=909689"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=909689"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}