U.S. long bond demand raises prospect of whole curve yielding below 1%

FILE PHOTO: A U.S. Dollar banknote is seen in this illustration taken May 26, 2020. REUTERS/Dado Ruvic/Illustration

The 30-year U.S. Treasury US30YT=RR, at just above 1.22%, is still more than 22 basis points away as of Monday, rebounding from Friday when it touched its lowest since April. Maroutsos said it was a “sign that investors are reaching for any yield they can get regardless of low it is.” On Thursday, the U.S. Commerce Department said U.S. gross domestic product declined at a 32.9% annualized rate last quarter, slightly less than expected but still the deepest decline in output since the government started keeping records in 1947.

Still, he said a counterbalance to downward pressure on yields could be the expected upcoming stimulus and the Treasury’s refunding announcement. Bonds at the long end of the curve are sensitive to inflation risk, as higher prices erode purchasing power and returns. Current inflation stands well below the 2 percent target rate, said Fed Chair Jerome Powell on Wednesday, with the pandemic crushing demand. “I think fundamentally this is a disinflationary shock,” he said.

Umm, will someone tell me what it means? TiA

One dollar with F series 😱

Good. This is naturally what happens. The market will determine interest rates for loans based upon risk, not based on fed funds.

Who cares what the Fed is doing with their rabid attempt at currency. It is time to adopt code we can all read, verify & understand instead of having blind faith in unelected officials doing a psuedo-science job. If I'm not being clear I'm saying ditch dollars and buy bitcoin.

The truth is terörist usa is sinkİng down

Why are negative interest rates positive for the economy? An unorthodox approach

Why doesn't the U.S. sell special COVID-19 Bonds to fund the recovery?

when economics news goes completely over my head

The demand thereafter as you have it neutralise all other efforts to bring it down to where you started.

United States of illuminati

anico_derek What does this mean in simple words?

Thank Elon

Green Paper ( painted ) not Eco

What he did?

ZimbabweanLivesMatter ZimbabweanLivesMatter ZimbabweanLivesMatter ZimbabweanLivesMatter ZimbabweanLivesMatter ZimbabweanLivesMatter ZimbabweanLivesMatter ZimbabweanLivesMatter ZimbabweanLivesMatter ZimbabweanLivesMatter ZimbabweanLivesMatter ZimbabweanLivesMatter

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

U.S. Treasury yields move higher as investors monitor economic data, auctionsThe U.S. Treasury will auction $54 billion of 13-week bills and $51 billion of 26-week bills on Monday. XAUUSD_li The yield curve is likely to flatten out as investors are likely to opt for longer-dated debt with little inflationary pressure at the auction
Source: CNBC - 🏆 12. / 72 Read more »

Refiners Retrench as Demand For Gasoline, Jet Fuel ShrivelsU.S. fuel makers ran below capacity in the second quarter in a preview of the challenges they are likely to face as the world transitions away from fossil fuels. When the economic blockade is lifted, everything will be better Lift the embargo.
Source: WSJ - 🏆 98. / 63 Read more »

Marathon Petroleum to permanently close two U.S. oil refineriesMarathon Petroleum plans to permanently close two small U.S. oil refineries in Martinez, California, and Gallup, New Mexico, the company said, eliminating 800 jobs in response to lower fuels demand. Thank me Good! 💕
Source: Reuters - 🏆 2. / 97 Read more »

Kevin McHale Shares How He Accidentally Gave His Boyfriend SalmonellaKevin McHale's COVID-19 scare was actually just him poisoning his boyfriend -- wait, what?! (via toofab) TooFab COVID ? I thought weed was the cure TooFab TooFab He looks much younger and shorter than I remember.
Source: TMZ - 🏆 379. / 59 Read more »

Geordie Shore's Sophie Kasaei poses completely nude with just pillow to cover upSophie Kasaei has shown off her killer curves and figure in a jaw-dropping naked snap while on holiday in Ibiza DailyMirror Where? She isn't naked DailyMirror DailyMirror When you got to pay the pills then you got to do what you have to 😂
Source: Mirror Celeb - 🏆 476. / 51 Read more »