(Updates prices and adds a quotation)
Bentley, Alden
Reuters, NEW YORK, July 14 – Treasury rates fell to session lows on Wednesday after Federal Reserve Chairman Jerome Powell’s remarks, in which he signaled tapering was still a ways off and held to a transitory inflation stance despite data showing producer prices rose in June.
In remarks prepared for delivery before a congressional hearing on Wednesday, Powell said the U.S. job market is “still a ways off” from the progress the Federal Reserve wants to see before lowering its support for the economy, while current high inflation will drop “in coming months.”
“The testimony portrays a stay-the-course mindset,” said Roberto Perli, Cornerstone Macro’s head of global policy research.
The benchmark 10-year yield declined 4 basis points to 1.376 percent on the day.
The spread between two-year and ten-year notes has flattened to 114 basis points.
Breakeven rates on five-year Treasury Inflation-Protected Securities (TIPS) rose to 2.60 percent as inflation predictions continued to rise. They’ve risen from roughly 2.45% on Monday.
According to the Labor Department, the producer price index for final demand grew 1.0 percent in June after climbing 0.8 percent in May. The PPI increased by 7.3 percent in the year to June. This was the largest year-over-year increase since November 2010, and it came after a 6.6 percent increase in May.
It comes as statistics released on Tuesday revealed that consumer prices in the United States grew by the most in 13 years in June, owing to supply limitations and a further rebound in travel-related service costs from pandemic-low levels as the recovery gained traction.
Wednesday, July 14th, 9:46 a.m. in New York / 1346 a.m. in London
Price Current Net Yield Change in Percentage (bps)
0.05 0.0507 0.000 0.05 0.0507 0.000 0.05 0.0507 0.000 0.05 0.0507 0.000
0.05 0.0507 0.000 0.05 0.0507 0.000 0.05 0.0507 0.000 0.05 0.0507 0.000
99-201/256 0.2349 -0.020 -0.020 -0.020 -0.020 -0.020 -0.020 -0.020 –
Note 99-206/256 with a three-year maturity 0.4406 -0.029 -0.029 -0.029 -0.029 –
100-76/256 0.8138 -0.034 -0.034 -0.034 -0.034 -0.034 -0.034 -0.034 -0.0
100-212/256 1.1259 -0.040 -0.040 -0.040 -0.040 -0.040 -0.040 -0.040 –
102-72/256 is a ten-year note with a face value of $10,000. 1.3761 -0.039; 1.3761 -0.039; 1.3761 –
105-52/256 1.9329 -0.030 105-52/256 1.9329 -0.030 105-52/256 1.9329 -0.030 105-5
108-64/256 108-64/256 108-64/256 108-64/256 0.0061 -0.031 2.0061 -0.031 2.0061 -0.031
SWAP DOLLAR SPREADS
Last Net Change (bps) (bps)
7.50 -0.25 spread on a two-year dollar swap in the United States
10.00 0.25 spread on a three-year dollar swap in the United States
The spread on a 5-year dollar swap in the United States is 8.25 to 0.50.
-1.25 -0.50 spread on a 10-year dollar swap in the United States
-28.25 -0.75 spread on a 30-year dollar swap in the United States (Reporting by Alden Bentley)/n
