NEW YORK (dpa-AFX) – US government bonds turned slightly negative on Tuesday. The futures contract for ten-year Treasuries (T-Note Future) recently fell by 0.09 percent to 127.86 points. In return, the yield on ten-year government bonds rose to 1.80 percent.
In light of some positive company news, investors’ risk appetite increased again somewhat in the course of trading. As a result, all of the important stock indices on Wall Street were recently listed in positive territory, while demand for government securities, which are considered safe, fell accordingly.
Meanwhile, the debate about an appropriate Federal Reserve response to high inflation continues. After the regional Fed President of Atlanta, Raphael Bostic, surprised with offensive statements at the weekend, he now backtracked a bit. His preferred option for the upcoming March rate meeting is not a big 0.5 percentage point hike, Bostic said. There is stubborn speculation on the markets that the Fed could initiate its rate hike with a big step.
In an interview, the regional head of the Philadelphia Fed, Patrick Harker, spoke out in favor of a total of four interest rate hikes this year, and up to five hikes are even expected on the markets. Fed Chair Jerome Powell did not completely rule out an even faster rate hike at the last interest rate meeting. However, many statements by high-ranking central bankers indicate that the Fed wants to keep all options open instead of committing to an interest rate path right now./la/he