Treasury yields tick higher amid market volatility as yield curve remains inverted
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Treasuryyields tick higher amid market volatility as yield curve remains inverted
U.S.Treasury yields were higher early on Wednesday after a volatile dayon Wall Street, but the closely watched 2-year/10-year yield curve remainedinverted, a key recession warning. At around 2:45 a.m. ET, the yield on thebenchmark 10-year Treasury note climbed one basis point to 2.824%, while theyield on the 30-year Treasury bond was up at 3.062%.
Yields move inversely to prices, and one basis point equals0.01%. Market professionals track the spread between the longer-term Treasuryyield and the shorter-term yield, with the former typically being higher.
However, the 2-year Treasury yield was up at 2.843% onWednesday morning, above the 10-year. The market has become increasinglyconcerned about the potential for recession in recent weeks as economic datahas weakened, while Federal Reserve Chairman Jerome Powell has committed toaggressive action to fight soaring inflation.
Should the central bank raise interest rates too quickly, theslowdown in the economy could then turn into a recession. Investors await theminutes of the Federal Open Market Committee's latest monetary policy meeting,which will be published at 2 p.m. on Wednesday for an indication of the way totighten the policy.
Several notable data points are also expected Wednesdaymorning, including June's ISM non-manufacturing PMI (Purchasing Managers Index)readings and May's JOLTs job openings, both of which are due at 10 a.m.