Long-dated U.S. Treasuries are rallying, breaking above a key downtrend that began in late 2023, fueled by recent soft economic data, which has led investors to reprice higher expectations on the Federal Reserve cutting interest rates in September.
The U.S. manufacturing activity barometer contracted more than expected in May, leading to a sharp retreat in Treasury yields at the start of the week. After falling back into contraction in April, manufacturing activity continued to decline for the second consecutive month, according to the Institute for Supply Management survey.
The U.S. manufacturing activity barometer contracted more than expected in May, leading to a sharp retreat in Treasury yields at the start of the week. After falling back into contraction in April, manufacturing activity continued to decline for the second consecutive month, according to the Institute for Supply Management survey.
BP p.l.c.? and Trinidad and Tobago?s state energy firm NGC reportedly received a two-year license from the U.S. Treasury Department to negotiate and develop the Cocuina-Manakin gas fields with Venezuela.
Mortgage applications in the U.S. saw an increase of 1.9% for the week ending May 17, continuing an upward trend following a 0.5% rise the previous week. The rise in applications aligns with a decrease in average mortgage rates, which reached a seven-week low due to expectations of lower inflation reducing long-dated Treasury yields.
A major trend shift is unfolding in the bond market, as key Treasury yields are currently testing the support of the crucial 200-day moving average, following the release of benign economic data that has cemented investor bets on Federal Reserve rate cuts.
Hasbro Inc. (HAS) has raised $500 million of corporate debt through a sale of 10-year bonds, its first bond sale since 2019. The toy giant behind staples such as Monopoly, Beyblade and Play-Doh and film franchises Transformers and G.I. Joe issued debt with yields of 1.6% above treasury bills on Wednesday, according to Bloomberg.
Solar stocks have demonstrated some of the most robust performances among various sectors since the start of the month, buoyed by favorable market conditions and positive corporate earnings. The Invesco Solar ETF (TAN), which tracks the performance of approximately 40 solar energy companies, has experienced a significant upturn. Several factors have contributed to this positive momentum.
Wealthfront, a leader in the consumer fintech arena and a pioneer in the robo-advisor space, announced the launch of a new Automated Bond Ladder. This innovative tool is designed to help investors maximize returns on U.S. Treasuries, offering a fluid, low-risk investment option that provides greater tax efficiency than traditional savings accounts or certificates of deposit.
Federal Reserve Chair Jerome Powell emphasized the need to allow more time for restrictive monetary policies to bring inflation toward the Fed?s 2% goal Wednesday while reassuring markets the Fed?s policy stance remains appropriate, pushing back fears of rate hikes.
As Treasury yields continue their upward trajectory, reaching levels not seen since November 2023, the impact on the U.S. mortgage market and potentially for the broader economy is becoming increasingly pressing. On Wednesday, the yield on the 30-year Treasury note climbed 5 basis points, reaching 4.78% by mid-morning in New York, on track to close at its highest level since Nov. 6, 2023.
The International Monetary Fund has raised concerns about a small number of hedge funds that now hold significant control over the U.S. Treasury futures market. ?A concentration of vulnerability has built up, as a handful of highly leveraged funds account for most of the short positions in Treasury futures,? the IMF?s April 2024 Global Financial Stability report states.
Yields on the 10-year Treasury note have ascended to a striking 4.70% this month, the highest mark since early November 2023 amid a toxic mix of higher inflation, a stubbornly resilient economy and revised expectations around Federal Reserve rate cuts.
On CNBC's "Halftime Report Final Trades," Bryn Talkington of Requisite Capital Management named Pacer US Cash Cows 100 ETF , which focuses on the companies in the Russell 1,000 with the highest free cash flow yield. Stephen Weiss of Short Hills Capital Partners named U.S. 2 Year Treasury Note, which is at 5% yield.
U.S. Treasury yields have reached their highest levels since mid-November 2023, driven by a mix of economic resilience, persistent fiscal spending and resuming inflationary pressures. These factors are steering the market?s expectations away from earlier predictions of imminent Federal Reserve rate cuts, significantly impacting the cost of issuing U.S. government debt.
On CNBC's "Halftime Report Final Trades," Amy Raskin of Chevy Chase Trust said Shell plc (SHEL) has 12% free cash flow yield. On April 5, Shell updated its first quarter FY24 operational outlook, reflecting lower results from its liquefied natural gas trading business. Stephen Weiss of Short Hills Capital Partners named U.S. 2 Year Treasury Note Overview, saying it's a great place to hide.
Multiple federal regulators, including the Securities and Exchange Commission and the Office of the Comptroller of the Currency, are reportedly investigating?Morgan Stanley?s? practices in vetting clients for potential money laundering activities. The probe extends to various Treasury Department offices, with the Federal Reserve also considering supervisory action.
Investors in the iShares 20+ Year Treasury Bond ETF (TLT) are grappling with unexpected challenges as inflation heats up, sending shockwaves through the bond market. iShares 20+ Year Treasury Bond ETF (TLT), once among the most favored bond funds of 2023, has seen a dramatic reversal of fortune, plunging to fresh lows in 2024 following a string of hotter-than-anticipated inflation data releases. iShares 20...
Investors in the iShares 20+ Year Treasury Bond ETF (TLT) are grappling with unexpected challenges as inflation heats up, sending shockwaves through the bond market. iShares 20+ Year Treasury Bond ETF (TLT), once among the most favored bond funds of 2023, has seen a dramatic reversal of fortune, plunging to fresh lows in 2024 following a string of hotter-than-anticipated inflation data releases. iShares 20...
On CNBC's "Halftime Report Final Trades," Stephen Weiss of Short Hills Capital Partners named U.S. 2 Year Treasury Note, which is?almost at a 5% yield. Jim Lebenthal of Cerity Partners named Applied Materials, Inc. (AMAT) as his final trade.
The CNN Money Fear and Greed index showed an improvement in the overall market sentiment, while the index remained in the "Greed" zone on Friday. U.S. stocks closed higher on Friday, with the Dow Jones index surging more than 300 points during the session. On Friday, Treasury yields moved higher following the release of jobs data from the Labor Department.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
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