Treasury yields down

Investment Analysis Clubs Macro Economic Trends and Risks
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The yield on ten-year Treasuries has gone down to around 4.4% while the yield on two-year Treasuries has risen to 4.9%. The yield curve has become even more inverted indicating a recession

10-year Treasury yield edges higher after hitting 2-month low as U.S. consumers’ inflation expectations rise for 2nd month

https://www.morningstar.com/news/marketwatch/20231122356/10-year-treasury-yield-edges-higher-after-hitting-2-month-low-as-us-consumers-inflation-expectations-rise-for-2nd-month

It was only a couple of months ago that we had headlines like this when it was expected that the ten year yield would just keep rising:

Could the US government be doing yield curve control or getting someone to do it for them?

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Why do you continue to post such nonsense without doing even a modicum of research?

Really. Seriously.

The two-year treasury has NOT risen to 4.9%. It has FALLEN to 4.9%.

It was 5.2% just a month ago. It is DOWN to where it was in July and August.

The 2yr/10yr yield curve is less inverted today than it was one year ago.

10-2 Year Treasury Yield Spread.

Stop with the MUS.

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Last week it was 4.8%

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@Divitias the U.S. government affects the yield curve by the level of spending. When the government spends more it needs to borrow money. The Treasury Department decides on what durations of Treasury bills, notes and bonds to offer in the market. This is the “supply” of debt that lenders bid on. The lenders provide the demand.

The Federal Reserve can suppress interest rates by buying Treasury bonds. That is Quantitative Easing (QE). Currently, the Fed is shedding its book of Treasury bonds (Quantitative Tightening or QT).

The free international market of lenders, including U.S. and foreign buyers, set the bond curve by bidding on bonds.
Wendy

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I appreciate that but just days ago almost everyone was predicting ever rising rates

Bond Market Outlook: Don't Expect High Yields to Fall Soon

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Where is it now? :sunglasses:

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One day and one headline does nothing for anyone. It is not the market. It is a fragment of BS. It is data points with no meaning. It is not opportunity it is not doom. It is not supposed to be a crying wolf.

If your world ends tomorrow it won’t be from one headline.

@WendyBG that takes selling paper so there is more in the market. The money then goes to the federal spending. Meaning that increases the money supply. Again lowering interest rates this time with fiscal policy or demand-side econ.

Things invert between supply-side led econ and demand-side led econ.

But I could be wrong I am tired at this hour. It is also complex. It is not necessarily one answer.