{"id":361858,"date":"2021-11-03T12:47:00","date_gmt":"2021-11-03T09:47:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bond-report-long-dated-treasury-yields-under-pressure-ahead-of-fed-decision\/"},"modified":"2021-11-03T12:47:00","modified_gmt":"2021-11-03T09:47:00","slug":"bond-report-long-dated-treasury-yields-under-pressure-ahead-of-fed-decision","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bond-report-long-dated-treasury-yields-under-pressure-ahead-of-fed-decision\/","title":{"rendered":"#Bond Report: Long-dated Treasury yields under pressure ahead of Fed decision"},"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-6a3d1f44e9913\" 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-6a3d1f44e9913\" 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-under-pressure-ahead-of-fed-decision\/#What_are_yields_doing\" >What are yields 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-under-pressure-ahead-of-fed-decision\/#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-under-pressure-ahead-of-fed-decision\/#What_are_analysts_saying\" >What are analysts 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-under-pressure-ahead-of-fed-decision\/#William_Watts\" >William Watts<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Bond Report: Long-dated Treasury yields under pressure ahead of Fed decision<\/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-0000471368\" 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-0000471368\" 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>       Rates on 10-year Treasury notes and 30-year bonds fell Wednesday morning, flattening the yield curve, as investors awaited the outcome of a Federal Reserve meeting that\u2019s expected to produce a plan for tapering monthly asset purchases and clues to the timing of eventual interest-rate increases.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"What_are_yields_doing\"><\/span>What are yields doing?<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<ul class=\"articleList\">\n<li>\n      The yield on the 10-year Treasury note<br \/>\n        TMUBMUSD10Y,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.000%\" channel=\"\" class=\"\">1.537%<\/bg-quote><br \/>\n       was 1.526%, compared with 1.546% at 3 p.m. Eastern on Tuesday. Yields and debt prices move in opposite directions.<\/p>\n<\/li>\n<li>\n      The 2-year Treasury yield<br \/>\n        TMUBMUSD02Y,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.000%\" channel=\"\" class=\"\">0.454%<\/bg-quote><br \/>\n       edged up to 0.458%, compared with 0.454% on Tuesday afternoon. The 2-year note saw its biggest one-day fall since March 23, 2020, on Tuesday, a day after ending at a 19-month high.<\/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=\"\">1.944%<\/bg-quote><br \/>\n       edged down to 1.937% versus 1.958% on Tuesday afternoon.<\/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> The Federal Reserve is fully expected to lay out its schedule for scaling back and eventually ending its monthly asset purchases. Investors will be focused on whether Fed Chairman Jerome Powell pushes back on growing speculation that the end of the tapering process, expected in mid-2020, will be quickly followed by rate increases.<\/p>\n<div class=\"paywall\">\n       <strong>Read:<\/strong> Fed seen announcing start of a \u2018taper\u2019 of bond purchases this week<\/p>\n<p>Relatedly, investors will be closely watching for any changes in the Fed\u2019s assessment of inflation pressures, which officials have largely insisted would be transitory. The yield curve \u2014 a line plotting yields across maturities \u2014 has flattened significantly amid rising short-term rates since late September as investors began to price in a more aggressive than previously expected policy response from the Fed and other major central banks in response to persistent inflation pressures.<\/p>\n<p><strong>See:<\/strong> 5 things to watch for when Fed meets Wednesday<\/p>\n<p>The Fed will release its policy statement at 2 p.m. Eastern, followed by Powell\u2019s <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> conference at 2:30 p.m.<\/p>\n<p>Ahead of that, the ADP estimate of private-sector payroll growth for October is due at 8:15 a.m. The figures will be watched for clues to Friday\u2019s October jobs report, though the relationship between the ADP data and official numbers isn\u2019t particularly strong.<\/p>\n<p>IHS Market\u2019s October services-sector purchasing managers index is due at 9:45 a.m. The Institute for Supply Management will release its closely watched index of services activity at 10 a.m. Separately, September factory orders are also set for release at 10.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"What_are_analysts_saying\"><\/span>What are analysts saying?<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>\u201c[W]e think Powell will go to great lengths to drive home (as he did at the last FOMC meeting) that while the conditions for taper have been met, the conditions for [rates] liftoff have not,\u201d said Tom Porcelli, chief U.S. economist at RBC Capital Markets, in a note. \u201cOf course, as our \u201922 growth\/inflation forecasts highlight, we certainly believe conditions will be met for a hike next year \u2014 the open question is how many hikes.\u201d<\/p>\n<p>\u201cThe September postmeeting statement stated that, \u2018Inflation is elevated, largely reflecting transitory factors.\u2019 We expect the statement to keep this wording, particularly given the recent upside news to inflation is largely driven by energy prices,\u201d wrote analysts at UniCredit. \u201cBut Chair Powell is likely to acknowledge that inflation is expected to move up and stay higher for longer than the Fed initially anticipated, and that uncertainty over the inflation outlook is high.\u201d<\/p><\/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\":\"William Watts\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/topics\/journalists\/william-watts\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/wlwatts\",\"text\":\"@wlwatts\"},{\"type\":\"link\",\"icon\":\"facebook\",\"url\":\"https:\/\/facebook.com\/williamwattsmarkets\",\"text\":\"williamwattsmarkets\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:bwatts@marketwatch.com\",\"text\":\"bwatts@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"William_Watts\"><\/span>William Watts<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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