NEW YORK (dpa-AFX) – US government bonds continued to be under pressure on Tuesday. The futures contract for ten-year Treasuries (T-Note future) fell by 0.38 percent to 122.72 points. The yield on ten-year government bonds rose to 2.38 percent. This is the highest level since May 2019.
Interest rates are being boosted primarily by the high level of inflation, which is likely to continue to rise. In view of the development, central bank chief Jerome Powell said on Monday evening that the central bank could also raise its key interest rate more than the usual 0.25 percentage points per meeting. Other high-ranking central bankers from the USA had already made similar statements.
On Tuesday, James Bullard, regional central bank chairman from St. Louis, again advocated a rapid tightening of monetary policy. He recommends raising interest rates quickly to an anti-inflationary level. Bullard is seen as a representative of a particularly tight monetary policy. A few days ago he said he wanted to raise the US interest rate to more than three percent by the end of the year.
The US Federal Reserve is currently signaling an interest rate level of almost two percent for the end of 2022. Last week she initiated the turnaround in interest rates by raising her key interest rate slightly for the first time since 2018 and promising a series of further hikes./la/jha/