Huitong.com, August 21 - U.S. Treasury yields fell on Thursday (August 20). The latest Federal Reserve meeting minutes did not provide clear clues on how quickly the Fed will raise interest rates, weakening market expectations for a rate hike next month.
Feders generally agreed last month that the economy is approaching the situation where interest rates should be raised, but they are worried that the risks posed by sluggish inflation and weak global economy are too great, so they cannot promise a rate hike. "The Fed will not raise interest rates in September. Fed policymakers have not given a clear schedule for interest rate hikes. People originally thought the Fed would convey the message of interest rate hikes." The
indicator 10-year Treasury bond rose 11/32, with a yield of 2.09%, and has been lower since hitting 2.50% in mid-June.
On Thursday in the U.S. short-term interest rate over-the-counter market, traders expect the chances of the Federal Reserve hike in September to be 33%, compared with 48% a week ago.
Oil prices fell to six and a half years lows, aggravating concerns about low inflation. U.S. crude oil fell to nearly $40 a barrel on Thursday, and U.S. crude futures prices turned from a decline after the announcement of the first hurricane of the Atlantic hurricane season this year.
But inflation worries did not reduce demand for the sale of US five-year inflation-preserving bonds (TIPS) on Thursday.
Investor demand for the US Treasury Department's bid for $16 billion in five-year TIPS hit a record high, as the recent decline in TIPS has attracted market participants who want to buy low to participate in the bid.
Economic data shows that the US economy is still strengthening. U.S. home sales rose to nearly eight and a half years high in July, and manufacturing activity accelerated in August in the central Atlantic coast, the latest sign of steady economic growth in the U.S. economy that could drive the Federal Reserve to raise interest rates this year.
The Treasury Department will sell $90 billion in new interest-bearing bonds next week, including $26 billion in two-year bonds, $35 billion in five-year bonds and $29 billion in seven-year bonds.
10-year US Treasury yield daily chart
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