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The profitability of the treasury falls sharply when Russia invades Ukraine

On Thursday morning, the yield of US Treasury bonds fell more sharply after Russia invaded Ukraine.

Yield per benchmark A 10-year Treasury note fell more than 8 basis points to 1.8940% around 7:30 a.m. ET. Yields on 30-year treasury bonds decreased by 6 basis points to 2.2049%. Yields are moving back to prices, and 1 basis point is 0.01%.

Treasury bond yields declined as investors flocked to safe government bond assets, while gold jumped to the highest level more than a year. World markets fell sharply after news of Russia’s attack on Ukraine.

Russian President Vladimir Putin said in a statement on Thursday that Russia would start hostilities in Ukraine. Then there were reports of multiple explosions in at least four cities in Ukraine.

It came just days after Putin ordered troops to enter Ukraine’s two separatist eastern regions.

President Joe Biden condemned the attack, saying in a statement that “the world will bring Russia to justice.”

The escalation of the conflict has also pushed up oil prices, leading to fears that it could lead to higher inflation, complicates the Federal Reserve’s strategy raising interest rates to curb rising prices.

Stock Picks and Investment Trends from CNBC Pro:

Patrick Armstrong, Plurimi Wealth’s chief investment officer, told CNBC’s Squawk Box Europe on Thursday that “we may have a Fed that won’t be as aggressive as it used to be, but war and sanctions are stagflationary – they don’t create growth.” , they create inflation, but not the right kind of inflation, and this should lead to a rotation of the yield curve.

“You can’t own a 10-year treasury with a yield of 1.7% amid stagflation,” Armstrong added, explaining that the inflationary part of this scenario would eventually lead to higher treasury yields.

The number of initial unemployment claims filed last week is also due to be released at 8:30 a.m. ET.

Meanwhile, Fed Gov. Christopher Waller is due to speak at the University of California, Santa Barbara, at 8:25 p.m. ET.

Auctions for $ 45 billion for 4-week bills, $ 35 billion for 8-week bills and $ 50 billion for 7-year bills are scheduled for Thursday.

Tanya Machel of CNBC contributed to this market report.

Reported by Source link

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The profitability of the treasury falls sharply when Russia invades Ukraine

On Thursday morning, the yield of US Treasury bonds fell more sharply after Russia invaded Ukraine.

Yield per benchmark A 10-year Treasury note fell more than 8 basis points to 1.8940% around 7:30 a.m. ET. Yields on 30-year treasury bonds decreased by 6 basis points to 2.2049%. Yields are moving back to prices, and 1 basis point is 0.01%.

Treasury bond yields declined as investors flocked to safe government bond assets, while gold jumped to the highest level more than a year. World markets fell sharply after news of Russia’s attack on Ukraine.

Russian President Vladimir Putin said in a statement on Thursday that Russia would start hostilities in Ukraine. Then there were reports of multiple explosions in at least four cities in Ukraine.

It came just days after Putin ordered troops to enter Ukraine’s two separatist eastern regions.

President Joe Biden condemned the attack, saying in a statement that “the world will bring Russia to justice.”

The escalation of the conflict has also pushed up oil prices, leading to fears that it could lead to higher inflation, complicates the Federal Reserve’s strategy raising interest rates to curb rising prices.

Stock Picks and Investment Trends from CNBC Pro:

Patrick Armstrong, Plurimi Wealth’s chief investment officer, told CNBC’s Squawk Box Europe on Thursday that “we may have a Fed that won’t be as aggressive as it used to be, but war and sanctions are stagflationary – they don’t create growth.” , they create inflation, but not the right kind of inflation, and this should lead to a rotation of the yield curve.

“You can’t own a 10-year treasury with a yield of 1.7% amid stagflation,” Armstrong added, explaining that the inflationary part of this scenario would eventually lead to higher treasury yields.

The number of initial unemployment claims filed last week is also due to be released at 8:30 a.m. ET.

Meanwhile, Fed Gov. Christopher Waller is due to speak at the University of California, Santa Barbara, at 8:25 p.m. ET.

Auctions for $ 45 billion for 4-week bills, $ 35 billion for 8-week bills and $ 50 billion for 7-year bills are scheduled for Thursday.

Tanya Machel of CNBC contributed to this market report.

Reported by Source link

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Most Popular