U.S. yields climb as strong data supports more Fed rate hikes


U.S. two-year/10-year yield curve deepens inversion


U.S. 2-year, 10-year yields post largest daily gain in two weeks


U.S. ISM-services index rises


U.S. factory orders gain

By Gertrude Chavez-Dreyfuss

NEW YORK, Dec 5 (Reuters) - U.S. Treasury yields rose on Monday as strong data on the services and manufacturing sectors, coming on the heels of a solid non-farm payrolls report, reinforced expectations the Federal Reserve will continue to raise interest rates well into 2023.

The U.S. two-year/10-year yield curve US2US10=TWEB deepened its inversion from last Friday. The gap between the two notes' yields widened to as much as -81.20 basis points (bps), the most in two weeks, and was last at -78.5 bps.

The inversion of this curve typically precedes recession.

U.S. yields extended gains after Monday's slew of data showed continued expansion in the world's largest economy.

U.S. services industry activity unexpectedly picked up in November, with employment rebounding. The Institute for Supply Management (ISM) said on Monday its non-manufacturing PMI increased to 56.5 last month from 54.4 in October, which was the lowest reading since May 2020.

U.S. factory activity also showed a 1% gain for October, as did orders for durable goods.

"I think the Fed has more wood to chop here," said Gregory Faranello, head of U.S. rates at AmeriVet Securities in New York.

"The Fed took a sledgehammer to the market all year, but (Fed Chair Jerome) Powell said we're going to slow things down a little bit which makes sense and see how the economy evolves. But ISM services were well north of 50 so there is definitely conflicting data here," he added, saying that, in contrast, inflation has been on a downtrend of late.

U.S. yields initially jumped on Friday after nonfarm payrolls increased by 263,000 jobs last month, which was higher than expected, with the data for October also revised higher.

"The market is accepting that inflation is cooling and that's good news," said Stan Shipley, fixed income strategist, at Evercore ISI in New York.

"The problem is they're also looking at the labor market, (showing) a solid reading for the month of November, which means the Fed is going to go more because it wants the labor market to slow which raises the risk of recession," he added.

The rate futures market on Monday had priced in a peak fed funds rate of 4.95%, seen hitting at the July meeting. That was down from about 5.1% before Fed Chair Powell said last week that the U.S. central bank will likely slow the pace of interest rate hikes as soon as this month.

In afternoon trading, the yield on 10-year Treasury notes US10YT=RR was up 9.6 bps at 3.599%, posting its largest daily gain in roughly two weeks.

The yield on the 30-year Treasury bond US30YT=RR was up 5.8 bps at 3.618%.

On the shorter-end of the curve, the two-year US2YT=RR U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 10.9 bps at 4.390%. The two-year's yield rise was the largest daily gain since Nov. 18.

December 5 Monday 2:58 PM New York/1958 GMT


Current Net

Yield % Change

(bps) Three-month bills US3MT=RR 4.2075


-0.011 Six-month bills US6MT=RR



0.034 Two-year note US2YT=RR

100-54/256 4.3874

0.107 Three-year note US3YT=RR



0.132 Five-year note US5YT=RR

100-96/256 3.7916

0.126 Seven-year note US7YT=RR

100-248/256 3.7161

0.111 10-year note US10YT=RR

104-96/256 3.5974

0.094 20-year bond US20YT=RR

102-76/256 3.834

0.050 30-year bond US30YT=RR

106-248/256 3.6169



Last (bps) Net



U.S. 2-year dollar swap




U.S. 3-year dollar swap




U.S. 5-year dollar swap




U.S. 10-year dollar swap




U.S. 30-year dollar swap




Reporting by Gertrude Chavez-Dreyfuss; Editing by Kirsten Donovan and Angus MacSwan

免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。


本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。