Interest rates are poised to fall this year after the Federal Reserve announced it may cut rates as many as three times in 2024, which makes the bond universe increasingly attractive
The U.S. yield curve shifted dramatically during the height of the banking crisis in Q2, but has since reverted.
The yield on the 2-year U.S. Treasury is currently 3.27%, while the yield on the 10-year U.S. Treasury is 2.82%, representing a multi-decade extreme in the relationship between the two.
Interest rates have been a focal point in the markets during the 2022 trading year, and to access this niche of the markets investors and traders can consider utilizing three different product groups: government bonds, Treasury yields and bond-focused ETFs.
Interest rates remain in focus as the U.S. Federal Reserve is expected to increase benchmark rates two more times this summer, ultimately raising the federal funds rate to 1.75%.
The rate for a 30-year fixed mortgage in the United States just spiked above 5% for the first time since 2018, and that could have a big impact on the U.S. housing market.
The Federal Reserve announced on March 16 it was raising benchmark interest rates in the United States by 0.25%—it was the first such hike since 2018. Expect more to follow.
Treasury yields and stock market valuations traditionally share a positive correlation, but in 2021 that relationship seems to have broken down—at least temporarily. Here is what yields are telling us now.
Corrections of 5%-10% in the U.S. stock market used to be fairly frequent, but trading data from the most recent decade shows that trend has changed to some degree.