US Trea­suries (UST) Mar­ket

The Star Malaysia - StarBiz - - Treasury Pulse -

US bond mar­ket started off the week on the wrong foot as 2-year bench­mark UST yielded higher than its 5-year coun­ter­part on Tues­day.

The phenomenon of yields of shorter-pe­riod bonds higher than longer pe­riod ones is known as a yield curve in­ver­sion which has a good track record of in­di­cat­ing re­ces­sion. The in­verted yield curve in­di­cates in­vestors are wor­ried about the long-term growth of the econ­omy.

Mean­while, the ag­gres­sive com­ments from the Fed chair­man Jerome Pow­ell cited the labour mar­ket is still go­ing strong with “strong job cre­ation” and “grad­u­ally ris­ing wages” ahead of Novem­ber’s em­ploy­ment data.

As at yes­ter­day, the 2-, 5-, and 10-year bench­mark UST yields stood at 2.76%, 2.75% and 2.89%, re­spec­tively.

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