St Louis News

Yields on two-year Treasuries hit a nearly two-year high, and Federal Reserve Brad said the first r

up from 1.703% at 3 p.m. Eastern on Wednesday. The yield has risen 23.7 basis points to begin 2022. Yields and debt prices move opposite each other. The yield on the 30-year Treasury bond TMUBMUSD30Y up from 0.828% Wednesday afternoon. Thursday’s level was the highest for the 2-year rate since Feb. 27 The two-year Treasury yield led an advance in rates on Thursday after Federal Reserve Bank of St. Louis President Jim Bullard said the first interest-rate increase could come as soon as March. The move extended the rise in yields that followed the release of minutes from the Federal Reserve’s December meeting which showed policy makers discussed more aggressive rate increases and the possibility of shrinking the central bank’s nearly $9 trillion balance sheet. What are yields doing compared with 2.086% late Wednesday. That’s the highest level since Oct. 21. What’s driving the market the Institute for Supply Management’s reading on activity in the services sector dropped to 62% last month from a record 69.1% in November. Readings above 50% signal expansion and numbers above 60% are considered exceptional. Friday’s December jobs report looms for traders. Economists surveyed by The Wall Street Journal look for nonfarm payrolls to show a rise of 422 and a balance sheet runoff is one of possible next steps for monetary policy. Bullard is a 2022 voting member of the rate-setting Federal Open Market Committee. Bullard’s comments reinforced the hawkish shift reflected in Wednesday’s release of the minutes from the FOMC’s Dec. 14-15 meeting The 2-year Treasury yield TMUBMUSD02Y with the unemployment rate falling to 4.1% from 4.2%. Economists say risks to the jobs reading are skewed to the upside after a much stronger-than-expected reading Wednesday on December private-sector jobs from ADP. What are analysts saying TMUBMUSD10Y climbed 3 basis points to 1.733%


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