Treasury yields fell on Monday as investors prepare for Federal Reserve Chairman Kevin Warsh’s keynote speech in Jackson Hole later this week on the back of bond market pressures, stubborn inflation and soaring U.S. Treasuries.
yield 10 year Treasury bill Interest rates, a key benchmark for mortgages, auto loans and credit card debt, fell more than 2 basis points to 4.7120%.
of 30 year Treasury bill The yield also fell by more than 2 basis points to 5.2497%. yield of 2 year Treasury billwhich typically reacts in line with short-term Federal Reserve interest rate decisions, was more than 1 basis point lower at 4.2209%.
One basis point is equal to 0.01%, or one-hundredth of 1%, and yield and price are inversely proportional to each other.
Yields on the 30-year and 10-year notes ended Friday higher by more than 3 basis points.
Borrowing costs reached multi-decade highs last week as Secretary Scott Bessent’s Treasury Department announced an extension to its bond purchase program aimed at easing pressure on the long end of the yield curve. Yields initially fell, but then started rising.
Central bankers and economists gather for the annual Jackson Hole Symposium this week, with traders keeping an eye on Federal Reserve Chairman Kevin Warsh’s keynote address scheduled for Friday, as persistent inflationary pressures and the US’s $40 trillion debt loom ahead of the event.
Warsh’s speech will follow a number of new economic indicators released this week, including the July core PCE price index, the Fed’s preferred measure of inflation, and second-quarter GDP estimates.
