loading
loading
Investors are eyeing the prospect of a new global rate-tightening cycle as worries about inflation have mounted. On Friday, the Bank of Japan raised interest rates to a 31-year high and its governor signaled the central bank has entered a new phase focused on preventing inflation from overshooting its target. On Friday, US Treasury yields experienced an upward movement as investors expressed concerns regarding inflation. The Federal Reserve's recent increases in interest rates and indications of more hikes in the future contribute to this shift. With traders predicting additional adjustments in upcoming meetings, there is a growing focus on global central banks tightening their monetary policies to address escalating price pressures. The Fed on Wednesday raised rates and flagged more hikes in the coming months, while Fed Chairman Kevin Warsh delivered hawkish comments. "The two-year is going to be moving in tandem with hike pricing," said Molly Brooks, US rates strategist at TD Securities. "There's more risk (of) pricing in more hikes than pricing out hikes at this point." Traders see a more than 55% chance of another increase when the US central bank next meets in October, according to CME FedWatch. That expectation was at 53% late Thursday. The yield curve between 2- and 10-year notes was last at 25.5 basis points, after earlier reaching 23.8 bps, the flattest since June 25. The two-year yield has been driven higher faster than the 10-year yield, in part because of expectations of more hikes, while longer-dated debt has been relatively kept in check by the Fed's apparent willingness to control inflation. "The Fed meeting was able to kind of calm market nerves a little bit in terms of the long end," Brooks said. Investors will weigh upcoming data for clues about the US economic outlook. Yields mostly held gains after data on Friday, including a report showing US factory production unexpectedly fell in August after seven straight monthly increases. Spikes in oil prices tied to the US-Israeli war on Iran have been behind some of the inflation concern. But oil prices eased on Friday after China, acting on a request from Saudi Arabia, quietly asked Iran to limit attacks by Houthi rebels on Saudi oil infrastructure. The yield on the benchmark U.S. 10-year Treasury note was last up 5.3 basis points at 5%. It reached 5.041% on Tuesday, the highest since 2007. The two-year US Treasury yield, which typically moves in step with interest rate expectations for the Fed, was last up 5.3 basis points at 4.743%. It earlier reached 4.7475%, the highest since July 2024. The yield on the 30-year bond was up 3.6 basis points at 5.332%. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
document fetched 2026-09-20 02:46