US government debt yields are rising amid concerns about inflation
NEW YORK, May 15 (Reuters) – Long-term U.S. Treasury bond yields rose on Monday amid lingering investor fears that inflation would remain high. This trend was consistent with the dynamics of government bond yields in Europe.
On Monday, Fed-linked futures traders priced in about 70 basis points of rate cuts by the end of the year, but Atlanta Fed chief Rafael Bostic said he did not expect monetary easing this year as inflation is likely to fall more slowly than the market expects.
The yield on indicative 10-year bonds rose by four basis points to 3.503%, and the 30-year bond yield by five basis points to 3.832%.
The yield on 2-year US Treasuries remained unchanged at 4%.
Meanwhile, the one-month Treasury yield of around 5.6% reflected investors’ fears that the US government could default as early as June if it fails to reach an agreement on the debt ceiling.
The original message in English is available under the code: (David Barbusia, translated by Tomasz Kanik)