investors assess economy amidst debt ceiling talks
U.S. Treasury yields rose on Thursday as investors viewed as the path for the economy as debt ceiling negotiations continued and uncertainty about the interest price outlook intensified.
The yield on the ten-year Treasury sophisticated ten basis points at three.821%. The two-year Treasury yield popped 19 basis points to four.533%.
Yields and rates move in opposite directions. A single basis point is equivalent to .01%.
TICKERCOMPANYYIELDCHANGE%CHANGEUS1MU.S. 1 Month Treasury6.026%+.3270.00%US3MU.S. three Month Treasury5.46%+.0880.00%US6MU.S. six Month Treasury5.466%+.0340.00%US1YU.S. 1 Year Treasury5.261%+.0250.00%US2YU.S. two Year Treasury4.52%+.010.00%US10YU.S. ten Year Treasury3.808%-.0070.00%US30YU.S. 30 Year Treasury3.993%-.0110.00%
Debt ceiling deal negotiations appeared to make progress, fueling hopes that a resolution would be located ahead of the June 1 deadline. A failure to do so could lead to extreme financial consequences, Treasury Secretary Janet Yellen has warned.
Meanwhile, Fitch Ratings agency on Wednesday placed the U.S.’ AAA rating on unfavorable watch, noting that the ongoing debt ceiling debate increases the danger of the government not meeting some of its payment obligations. They do, on the other hand, anticipate a deal to be created in time, Fitch stated.
Investors also digested minutes from the Federal Reserve’s most current meeting published Wednesday that indicated officials are split on how to progress interest price policy. Additional price increases thus do not seem to be off the table ahead of the central bank’s June policy meeting.
That was in line with comments created by Fed speakers in current weeks, which have reflected varying views about irrespective of whether inflation has eased sufficiently to pause or finish price increases, or if far more hikes are required.