NEW YORK, Aug 23 (Globe Live Media) – U.S. bond yields hit multi-week highs on Tuesday as investors anticipated a hawkish monetary policy message from Federal Reserve Chairman Jerome Powell at the conference. Jackson Hole starting this week.
* 10-year bond yields hit five-week highs, while 30-year and 20-year bond yields hit eight- and six-week highs, respectively.
* Earlier in the session, government bond yields fell on data showing signs of a slowing economy, with private sector activity contracting for the second month in a row in August and new home sales falling sharply. in July.
* But by afternoon, debt yields recovered and medium- and long-term bond yields made gains.
* Investors are generally positioned for an aggressive stance on US monetary policy from Powell, who is scheduled to speak Friday morning in Jackson Hole. His message could involve more interest rate hikes to bring inflation down to the Fed’s 2% target.
“Overall, I don’t think there will be any change in monetary policy by the Fed. I would expect Powell to stick to the theme of what we’ve been hearing so far,” said Gregory Faranello, an analyst at AmeriVet Securities in New York.
* In afternoon trading, the yield on the 10-year Treasury note gained 2.8 basis points to 3.0628%. The 30-year debt yield added 3 basis points to 3.2712%.
* A key stretch of the Treasury yield curve, which measures the gap between yields on two-year and 10-year government notes, remained inverted at -23.9 basis points on Tuesday. The section shows an inversion since July 5.