US Treasuries extended their recent losses on Friday. The futures contract for ten-year Treasuries (T-Note Future) fell by 0.40 percent to 120.06 points. The yield on ten-year government bonds was 2.72 percent. This is the highest level in over three years.
In addition to Russia’s war against Ukraine, bond markets are dominated by US monetary policy. A series of rate hikes is expected from the Federal Reserve this year. In addition, the Fed wants to start reducing its trillion-dollar balance sheet as soon as possible. On the capital markets, this is causing interest rates to rise sharply, with the Fed’s interest rate policy tending to increase yields at the short end and the expected balance sheet shrinkage at longer maturities.
NEW YORK (dpa-AFX)
