{"id":342219,"date":"2021-09-21T17:10:00","date_gmt":"2021-09-21T14:10:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bond-report-long-dated-treasury-yields-edge-higher-after-biggest-drop-in-nearly-6-weeks\/"},"modified":"2021-09-21T17:10:00","modified_gmt":"2021-09-21T14:10:00","slug":"bond-report-long-dated-treasury-yields-edge-higher-after-biggest-drop-in-nearly-6-weeks","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bond-report-long-dated-treasury-yields-edge-higher-after-biggest-drop-in-nearly-6-weeks\/","title":{"rendered":"#Bond Report: Long dated Treasury yields edge higher after biggest drop in nearly 6 weeks"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a32078f4a665\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a32078f4a665\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bond-report-long-dated-treasury-yields-edge-higher-after-biggest-drop-in-nearly-6-weeks\/#What_Treasury_yields_are_doing\" >What Treasury yields are doing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bond-report-long-dated-treasury-yields-edge-higher-after-biggest-drop-in-nearly-6-weeks\/#Whats_driving_the_market\" >What\u2019s driving the market?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/bond-report-long-dated-treasury-yields-edge-higher-after-biggest-drop-in-nearly-6-weeks\/#What_analysts_are_saying\" >What analysts are saying<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/bond-report-long-dated-treasury-yields-edge-higher-after-biggest-drop-in-nearly-6-weeks\/#Vivien_Lou_Chen\" >Vivien Lou Chen<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/bond-report-long-dated-treasury-yields-edge-higher-after-biggest-drop-in-nearly-6-weeks\/#and\" >and<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/bond-report-long-dated-treasury-yields-edge-higher-after-biggest-drop-in-nearly-6-weeks\/#Mark_DeCambre\" >Mark DeCambre<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Bond Report: Long dated Treasury yields edge higher after biggest drop in nearly 6 weeks<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\">\n<\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\" role=\"region\" aria-label=\"article body\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000414404\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000414404\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Yields on long-dated Treasurys rose Tuesday, a day after U.S. government debt experienced its biggest rally in weeks amid worries about the possible collapse of  Chinese property development company Evergrande and the potential for global financial contagion. <\/p>\n<p> In addition, investors are positioning for a two-day Federal Reserve policy meeting that starts Tuesday and for a 20-year auction of U.S. Treasury bonds later in the day. <\/p>\n<div class=\"paywall\">\n<h6><span class=\"ez-toc-section\" id=\"What_Treasury_yields_are_doing\"><\/span>What Treasury yields are doing<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<ul class=\"articleList\">\n<li>\n      The 10-year Treasury yields<br \/>\n        TMUBMUSD10Y,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.000%\" channel=\"\" class=\"\">1.315%<\/bg-quote><br \/>\n        rose to 1.312%, compared with 1.308% on Monday at 3 p.m. Eastern Time. <\/p>\n<\/li>\n<li>\n      The 30-year Treasury bond yield<br \/>\n        TMUBMUSD30Y,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.000%\" channel=\"\" class=\"\">1.866%<\/bg-quote><br \/>\n       was at 1.863%, versus 1.847% a day ago.<\/p>\n<\/li>\n<li>\n      The 2-year Treasury note yields<br \/>\n        TMUBMUSD02Y,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.000%\" channel=\"\" class=\"\">0.213%<\/bg-quote><br \/>\n       0.214%, was little changed from levels seen Tuesday afternoon. <\/p>\n<\/li>\n<li>\n      On Monday, yields for the 10- and 30-year Treasury debt posted the biggest one-day yield decline since Aug. 13 and the 2-year notched its largest daily rate drop since Aug. 30. <\/p>\n<\/li>\n<\/ul>\n<h6><span class=\"ez-toc-section\" id=\"Whats_driving_the_market\"><\/span>What\u2019s driving the market?<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p> U.S. markets were calmer early Tuesday after the biggest one-day fall in Treasury yields in about six weeks on Monday. <\/p>\n<p>In addition to the Federal Open Market Committee meeting that gets under way in Washington on Tuesday, Treasury is set to auction $24 billion in 20-year bonds at 1 p.m. New York time.<\/p>\n<p>Monday\u2019s flight to safe-haven assets was partly precipitated by fears about the implosion of China property developer Evergrande Group. On Tuesday, Hui Ka Yan, chairman of the company, said it is dealing with unprecedented difficulties and its employees are facing severe challenges, but vowed to emerge from the crisis. <\/p>\n<p>Evergrande is said to have missed interest payments to at least two of its bank creditors on Monday, Bloomberg reported, citing people familiar with the matter.<\/p>\n<p>The challenges for the highly indebted Evergrande come as China clamps down on the use of excessive leverage by property developers in the country, and its problems have amplified concerns about a recovery in the world\u2019s second-largest economy in the wake of the COVID-19 pandemic. <\/p>\n<p>Meanwhile, financial markets are vulnerable to volatility as they anticipate the outcome of the Federal Reserve meeting this week, where there\u2019s a slight risk that policy makers could announce plans to taper $120 billion in monthly bond purchases.<\/p>\n<p>Investors will also be looking at the Fed\u2019s projections for interest-rate increases, which could also cool buying in Treasurys and push yields higher.  For the first time on Wednesday, Fed officials will pencil in their outlook for interest rates in 2024.<\/p>\n<p>Investors also are watching developments with the U.S. federal debt ceiling, amid concerns that the government will face a shutdown. The Wall Street Journal reported that Democratic leaders would attach a\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/house-to-vote-on-spending-measure-that-includes-debt-limit-suspension-11632164472?mod=searchresults_pos1&amp;page=1&amp;mod=article_inline\" class=\"icon none\">suspension of the debt limit<\/a>\u00a0through December 2022 to a short-term spending bill, which could set up a clash with Republicans over preventing both a partial government shutdown and a potential U.S. debt default. The House is expected to vote on the combined measure this week. <\/p>\n<p>In U.S. data releases on Tuesday, home builders picked up the pace of new-home construction and permitting in August, with a sharp focus on multifamily housing. <\/p>\n<p>Home builders started construction on homes at a seasonally-adjusted annual rate of 1.62 million in August, representing a 3.9% increase from the previous month\u2019s upwardly-revised pace, the Census Bureau\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.census.gov\/construction\/nrc\/pdf\/newresconst.pdf\" class=\"icon none\">reported<\/a>. Permitting for new homes occurred at a seasonally-adjusted annual rate of 1.73 million, up 6% from July and 13.5% from a year ago.\u00a0<\/p>\n<h6><span class=\"ez-toc-section\" id=\"What_analysts_are_saying\"><\/span>What analysts are saying<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<ul class=\"articleList\">\n<li>\n      \u201cThe threat of a government shutdown in the U.S. as Congress has not yet been able to resolve the lingering debt-ceiling issue adds to market participants\u2019 list of concerns,\u201d wrote analysts at UniCredit in a Tuesday research note.<\/p>\n<\/li>\n<li>\n       U.S. policy makers and regulators \u201chave survived a number of stress tests since 2008 that make the financial system better capitalized, more decentralized, and more resilient to shocks,\u201d said Ed Al-Hussainy, senior interest rate and currency analyst at Columbia Threadneedle Investments. \u201cThis makes U.S. leverage much less brittle relative to what we have in China.\u201d  <\/p>\n<\/li>\n<\/ul>\n<\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Vivien Lou Chen\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/author\/vivien-lou-chen\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/vivienlouchen\",\"text\":\"@vivienlouchen\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\" aria-label=\"links to  author page\"><span class=\"ez-toc-section\" id=\"Vivien_Lou_Chen\"><\/span>Vivien Lou Chen<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"and\"><\/span> and <span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Mark DeCambre\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/topics\/journalists\/mark-decambre\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/mdecambre\",\"text\":\"@mdecambre\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:mdecambre@marketwatch.com\",\"text\":\"mdecambre@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\" aria-label=\"links to  author page\"><span class=\"ez-toc-section\" id=\"Mark_DeCambre\"><\/span>Mark DeCambre<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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In addition, investors&#8230;<\/p>\n","protected":false},"author":1,"featured_media":332531,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-342219","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/342219","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=342219"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/342219\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/332531"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=342219"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=342219"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=342219"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}