returns bonds and gold

 

FED rate hike hits returns bond and gold

If expectations turn out to be correct, in a few weeks FED rates would rise from 2.50% to 3.25%. Precisely this prospect is raising T-bond yields, strengthening the dollar and dragging down the entire bond market in the rest of the world. A bad thing for gold , which before August 15th had risen above 1,800 dollars an ounce, while yesterday it stood at 1,730 dollars, that is to say the lowest level for almost a month.

A 10-year T-bond at 3% is very attractive for capital, which find it hardly sensible to opt for an asset without a coupon such as metal. And to say that inflation expectations are "overheating" after months of "cooling". According to the 5-year breakeven in the US, they were yesterday at 2.73%, a quarter of a percentage point above the levels of early July.

(Il Sole 24 Ore Radiocor Plus) - New York, Aug 30 - Mixed prices for US Treasury bonds, after two sessions of sharp falls due to the intervention of Federal Reserve Chairman Jerome Powell at the Jackson Hole symposium. The two-year bond yield, meanwhile, hit its highest since November 2007. Powell reiterated that the central bank must continue to raise interest rates and keep them at a high level until "the job is done" , that is, until inflation is under control. This is a process that will probably weaken the labor market and cause suffering to companies and families; not taking action, however, would cause even more.

 Today, the macroeconomic agenda calls for the Case-Shiller index on house prices, consumer confidence and the Jolts report on job vacancies. Great expectations, then, for the August employment report, scheduled for Friday. In July, there was an increase of 528,000 jobs and unemployment at 3.5%; by August, 325,000 new jobs and a stable unemployment rate are expected. 

Returning to Treasury bonds, the 10-year yield - which moves inversely to prices - is down to 3.101% from yesterday's 3.110%; 2021 closed at around 1.51%. The three-month US bond yield is down to 2.941%. 000 jobs and 3.5% unemployment; by August, 325,000 new jobs and a stable unemployment rate are expected. Returning to Treasury bonds, the 10-year yield - which moves inversely to prices - is down to 3.101% from yesterday's 3.110%; 2021 closed at around 1.51%. The three-month US bond yield is down to 2.941%. 000 jobs and 3.5% unemployment; by August, 325,000 new jobs and a stable unemployment rate are expected. Returning to Treasury bonds, the 10-year yield - which moves inversely to prices - is down to 3.101% from yesterday's 3.110%; 2021 closed at around 1.51%. The three-month US bond yield is down to 2.941%.

This is the trend of the other maturities: 2-year bond, yield up to 3.454%.

5-year bond, yield down to 3.253%.

30-year bond, yield slightly down to 3.243%.

AAA-Pca

(RADIOCOR) 30-08-22 14:57:05 (0342) 5 NNNN