U.S. Treasury yields rebounded on Tuesday as investors closely watched a reversal of the previous day’s global market selloff.
Benchmark yield 10-Year Treasury Bond At 5:12 a.m. ET, the notes were trading more than 5 basis points higher at 3.8371%. This comes after the 10-year Treasury yield was released on Monday. Dropped to lowest level since June 2023.
The rate of return is 2-Year Treasury Bond The note traded more than 7 points higher at 3.9627%. Yields and prices move in opposite directions, with 1 basis point equivalent to 0.01%.
Global markets appear to be coming out of trouble Monday’s sharp decline.
US stocks started this month The sharp decline came as new data stoked concerns about a worsening economic outlook. Weaker-than-expected data prompted investors to worry that the Fed may lag behind expectations in cutting interest rates. Recession-proof.
U.S. central bank policymakers on Wednesday Keep interest rates stableAlthough Fed Chairman Jerome Powell said a rate cut in September is on the table, it gave investors some hope.
Carsten Brzeski, global head of macro at ING Research, said in an interview with CNBC: “I am more inclined to think that this is a big thunderstorm in the summer, but this is not a fundamental change in the real economy. start.European street signs” Tuesday.
“I think what we’re seeing now is more of a reality check for the market, especially on the artificial intelligence side, and I hope and think we’re going to have a calmer situation now.”
Brzeski said he expects the Federal Reserve to cut interest rates by 50 basis points next month to boost market confidence.
“I don’t believe in these emergency meetings. It’s not serious enough at this point, but I think it would be a good signal for Jerome Powell to start a 50 basis point rate cut cycle because it’s really symbolic, “He added.
U.S. trade deficit data for June will be released around 8:30 a.m. ET on Tuesday.
