|
[뉴욕=이데일리 김정남 특파원] US Treasury yields are rising again, centered on long-term bonds. The Federal Reserve (Fed) has repeatedly stressed that inflation is temporary, but the market is unbelievable. Accordingly, the New York stock market is falling in reaction.
According to Market Point and CNBC on the 18th (local time), the 10-year US Treasury bond rate is trading at 1.731% as of 11:10 am on the day. It soared to 1.754% during the day. This is a 0.113 percentage point increase compared to the previous trading day. The level was raised to the level in January last year, before the pandemic.
In addition to 10-year bonds, interest rates on long-term government bonds with maturity of 3 years or more are all beating. The 5-year government bond yield rose to 0.900% during the intraday. Compared to the previous trading day, it surged nearly 0.12 percentage points.
Fed Chair Jerome Powell’s’lip service’ effect did not last less than a day. Chairman Powell reassured the market by hinting that he would not raise the benchmark interest rate until 2023. However, some commented that the Fed’s point chart and economic outlook are already at a level that it is safe to move toward austerity. The market’s atmosphere is that if inflation rises quickly, the Fed will be forced to withdraw, and that time can come sooner than expected.
As the Treasury bond rate soared, the New York Stock Market fell in reaction. The Standard & Poor’s (S&P) 500 index is currently trading at 3960.19, down 0.35%. The NASDAQ index, which is centered on technology stocks, is down 1.23%.
Piper Sandler’s Craig Johnson, market strategist, said, “The possibility of a rapid rise in government bond yields remains a major risk to the market.”