Bonds & Rates
Home›Bonds & Rates›Economy›US 30-year yield nears July peak as markets price mid-…
US 30-year yield nears July peak as markets price mid-month funding
The 30-year yield hovered near the multi-year high from late July at 5.28%, while traders also looked ahead to July CPI and PPI releases.
Core bond prices fell, with the belly of the curve underperforming in the US and European rates showing a more pronounced bear flattening, according to Action Forex. On the US curve, daily moves ranged from a +4.7 basis point gain on the 2-year to a +6.4 basis point rise on the 7-year. The US 30-year yield returned toward the multi-year high reached at the end of July, moving from 5.25% to 5.28%, keeping attention on the Treasury’s mid-month refinancing operation that includes 10-year Notes and 30-year Bonds.
The 2-year yield stood around 4.25% after fully reversing the decline seen following July payroll data, which the outlet tied to a shift in expectations for a September Fed rate hike. Action Forex noted that the US economy lost 23,000 jobs in July, and that May and June were revised down by a combined 103,000, before markets later refocused on inflation.
With the inflation narrative regaining dominance, Action Forex said focus turns to July CPI on Wednesday and PPI on Thursday. The commentary also linked elevated oil prices, driven by an escalating US-Iran standoff and energy supply concerns, to broader risk factors for rate expectations.